Goldman Sachs, USI Holdings
Big insurance broker USI Holdings Corp. agreed to be acquired by GS Capital Partners, a private equity affiliate of Goldman, Sachs and Co., in a transaction valued at approximately $1.4 billion, including repayment of USI’s existing debt obligations.
Under the terms of the GS Capital merger agreement, USI stockholders will receive $17 in cash for each share of USI common stock they hold, representing a premium of 20.5 percent to the average closing share price for the 30 calendar days prior to Oct. 24, 2006, the day USI announced it had received a buyut inquiry.
Swett & Crawford, Oxbridge
Wholesale insurance broker Swett & Crawford acquired the assets of Oxbridge Insurance Associates Inc., located in Morristown, New Jersey. The venture marks Atlanta-Based Swett and Crawford’s first acquisition since it was sold by Aon Corp. to an investment group in November 2005. Oxbridge is a wholesale broker writing programs for major professional sports leagues and an exclusive nationwide crane facility. Oxbridge also offers brokerage services for the transportation industry, with a focus on the motor coach, school bus and limousine industries.
General Casualty, Unigard and QBE
Sun Prairie,Wis.-based insurer General Casualty, its U.S. holding company and sister company Unigard Insurance Group in Bellevue, Wash., are being acquired by Australia-based QBE Insurance Group in an agreement with current parent companies Winterthur Insurance Group in Switzerland and Paris-based AXA Group. The purchase price is $1.16 billion. The U.S. operations will become part of QBE the Americas division, which anticipates no changes in General Casualty and Unigard’s businesses.
Donegal Mutual, Sheboygan Falls Mutual
Sheboygan Falls Mutual Insurance Co. and Donegal Mutual Insurance Co. a have signed an agreement whereby Donegal Mutual will make an investment of $3,500,000 in Sheboygan Falls Mutual and Donegal Mutual will enter into a services agreement with Sheboygan Falls Mutual. Consummation of the transactions requires the approval of the Wisconsin commissioner of insurance.
The affiliation will enable Sheboygan Falls Mutual to become more competitive in Wisconsin and gives Donegal Mutual an opportunity to expand into Wisconsin.
Alfa Corp. has completed its conversion and acquisition of Virginia Mutual Insurance Co. Virginia Mutual converted from a mutual company to a stock company and simultaneously has been recapitalized as Alfa Alliance Insurance Corp., a wholly owned subsidiary of Alfa Corp. Headquartered in Glen Allen, Va., Alfa Alliance will market its products under the Alfa Insurance name via a network of more than 200 independent agents throughout Virginia and North Carolina. Alfa Alliance will immediately expand its operations to the state of Tennessee. Initially, 14 independent agencies will market both home and auto personal lines products in the middle and eastern parts of Tennessee. Alfa plans to develop its Tennessee distribution network to approximately 45 agencies by year-end 2007.