Business Moves

USI, Webster Insurance

USI Holdings Corp. has acquired Webster Insurance, Inc., from Webster Financial Corp., the holding company for Webster Bank, N.A. The parties also signed marketing agreement to provide expanded products and services to their respective clients.

Webster Insurance, based in Meriden, Connecticut, is expected to contribute approximately $26 million in revenues to USI on an annual basis.

Webster Financial Corp. will retain Webster Risk Services, a third-party workers’ compensation administrator.

Webster Insurance is one of the largest middle-market insurance brokerage firms in New England with offices in Connecticut, Massachusetts and Rhode Island. Webster Insurance specializes in commercial property/casualty and employee benefits insurance for middle-market companies and personal lines insurance for individuals.

USI is headquartered in Briarcliff Manor, N.Y., and operates out of 66 offices in 18 states. USI is a portfolio company of Goldman Sachs Capital Partners, a private equity affiliate of Goldman Sachs & Co.

Mercator, Tennant Risk Services

Mercator Risk Services, a specialty wholesale insurance broker, acquired Tennant Risk Services Insurance Agency LLC, a Hartford, Conn.-based wholesale broker and underwriting manager. Terms were not disclosed.

Tennant Risk Services specializes in errors and omissions, directors and officers liability, employment practices liability, architects and engineers, medical malpractice and cyber liability among other things.

The combined firm will write slightly more than $110 million in premium with just under 70 people, Mercator’s CEO Chris Treanor said. Tennant President Bob Sargent will serve as an executive vice president and will head up the Hartford, Conn. office.

Treanor said he doesn’t anticipate there will be significant cost take-out as a result of the merger. “We want to make sure we have some capacity to grow,” he said. “We don’t see a whole lot of consolidation.”

Mercator grew business by 50 percent in 2007 and Tennant Risk Services has grown in excess of 20 percent year-over-year, Treanor noted.

Tennant Risk Services will be branded under the Mercator name as Mercator Pro for professional liability and management liability, while small business risks will be under the name, Mercator Commercial Services.

CBIZ, NAIS

CBIZ Inc. has acquired substantially all the assets of NAIS Inc. effective Feb. 1. NAIS provides innkeepers insurance programs marketed through James Wolf Insurance and Old Line Insurance, while NAIS, located in Frederick, Md., is also a provider of innkeepers’ insurance.

NAIS recorded approximately $2.1 million in revenue over the past 12 months and has about 25 employees.

CBIZ provides professional business services such as benefits, accounting, valuation and medical practice management in the United States.

CBIZ also provides employee services, including group benefits, property and casualty insurance, payroll, human resource consulting and wealth management.