Business Moves

The following mergers are in addition to those reported for the 2008 calendar year in Insurance Journal’s year-end issue, Dec. 22, 2008.

CRC Insurance, TAPCO Underwriters

CRC Insurance Services Inc., the wholesale insurance subsidiary of BB&T Corp. principal subsidiary Branch Banking and Trust Co., plans to acquire TAPCO Underwriters Inc. The transaction was to be completed Dec. 31. Terms were not disclosed. TAPCO will operate as a division of CRC managing general agency, Southern Cross Underwriters.

Burlington, N.C.-based TAPCO Underwriters is a managing general agency specializing in high-volume, middle-market excess and surplus lines. The company also has offices in Clearwater, Fla., and Manassas, Va.

TAPCO uses a proprietary underwriting technology model and call center to quote and bind a high volume of business on the phone in five minutes or less. TAPCO reported that last year placing more than $200 million in premiums.

TAPCO was founded in 1983 by Tapley O. Johnson Jr. with three employees. It has grown to five offices employing 175 people writing in 16 states and Washington, D.C. Current president, Tap Johnson III, said he and the entire TAPCO staff will remain.

Birmingham, Ala.-based CRC reported $3 billion in premiums in 2007. CRC was acquired by BB&T in 2002.

Munich Re, Hartford Steam Boiler

Munich Re has agreed to acquire specialty insurer Hartford Steam Boiler Group from American International Group for $747 million in cash. Munich Re said it would finance the purchase price from internal resources. Completion of the transaction is expected at the end of the first quarter of 2009.

AIG acquired HSB as a wholly-owned subsidiary in 2000 for approximately $1.2 billion. In 2007, HSB posted an after-tax profit of $158 million and the company’s average combined ratio since 2003 has been 73.8 percent. The gross written premium income of HSB Group in 2007 amounted to $904 million.

The main unit within HSB Group is Hartford Steam Boiler Inspection and Insurance Co., which specializes in machinery and plant and equipment breakdown insurance, inspection, certification and engineering consulting services.

Munich Re said the acquisition is a further step in its strategy to grow in the U.S. insurance market, decided on last year.

HSB Group’s President and CEO Douglas G. Elliot and his senior management team will remain with HSB.

BB&T, Davis Insurance

BB&T Insurance Services is acquiring J. Rolfe Davis Insurance of Maitland, Fla. Terms were not disclosed.

Founded in 1942 by former Orlando mayor J. Rolfe Davis, the privately-held broker is ranked among the nation’s top 100 large agencies by Insurance Journal.

David McKinney, chief executive officer of J. Rolfe Davis, and his partners, Don Boone and Bruce Arrow, will continue in their positions with BB&T-J. Rolfe Davis.

BB&T Insurance Services is a wholly owned subsidiary of Branch Banking and Trust Co. It operates 100 insurance agencies.

Brown & Brown

Florida-based insurance giant Brown & Brown Inc. went on a buying spree in the final weeks of the year in purchasing:

Gallagher Associates in Blackwood, New Jersey. Gallagher Associates, with revenues of $2.0 million, sells property/ casualty insurance in the southern New Jersey, Pennsylvania and Delaware region.

Baker, Thomsen Associates Insurance Services of Newport Beach, Calif., with revenues of $1.4 million from selling employee benefits.

Alexandria, La.-based Insurance 1 Inc., with revenues of $800,000, selling to individuals and businesses in Louisiana.

Alexander & Bolton Inc., of Alexandria, La., one of Louisiana’s longest operating insurance agencies with revenues of a $1.3 million.

Charter Insurance Services, Inc. in Albuquerque, New Mexico. with property/casualty revenues of $1.1 million.