21st Century, HomeWise
21st Century Holding Co. has agreed to acquire HomeWise Insurance Co. and HomeWise Management Co. from HomeWise Holdings Inc.
The agreement also includes renewal rights to certain policies from HomeWise Preferred Insurance Co. Terms of the transaction were not disclosed. The transaction is subject to regulatory approval and due diligence. The company expects to close prior to June 1, 2010.
HomeWise Insurance is based in Tampa and provides homeowners property coverage in Florida and Louisiana through independent agents. It reported approximately $38.2 million in gross written premium in 2009 and statutory surplus of $20.3 million.
Michael H. Braun, 21st Century Holding’s chief executive officer and president, said there are synergies including greater diversification of risk within Florida and Louisiana, the ability to write more premium for each dollar spent on reinsurance and expense savings from combining the companies. The company believes the deal will generate $100 million in premium.
21st Century Holding Co. underwrites commercial general liability insurance, commercial residential property, homeowners’ property and casualty insurance, flood insurance, inland marine, personal automobile insurance and commercial automobile insurance in Florida. The company underwrites general liability coverage as an admitted carrier in the states of Alabama, Louisiana and Texas. The company is approved to operate as a surplus lines/non-admitted carrier in 11 states.
Last October, 21st Century’s board of directors rejected an unsolicited buyout proposal by Florida-only insurer Homeowners Choice, Inc., which sought to acquire 21st Century for approximately $40 million.
Based in Tampa, HomeWise provides homeowners and other property insurance through independent agents. Last month, HomeWise Insurance Group notified state regulators that it was consolidating operations and would no longer write through HomeWise Preferred.
Hartford, TARP Funds
The Hartford said it would conduct a public offering of equity and debt securities as part of a plan to repay the $3.4 billion it took from the federal government as part of the Treasury’s Capital Purchase Program, also known as the Trouble Asset Relief Program (TARP).
The offerings will consist of $1.45 billion of common stock and $500 million of mandatory convertible preferred stock.
The company plans to use the proceeds to repurchase the Treasury’s preferred shares once it has received approval to do so. Following the repayment, the U.S. Treasury Department will continue to hold warrants to purchase approximately 52 million shares of The Hartford’s common stock at an initial exercise price of $9.79 per share. The company does not intend to repurchase the warrants.
MarshMac Agency, Rutherfoord
In a move that accelerates its national growth, Marsh & McLennan Agency LLC (MMA), a subsidiary of insurance broker Marsh Inc., has acquired Thomas Rutherfoord, Inc., the country’s 14th largest privately-held independent agency according to Insurance Journal’s Top 100. Terms were not disclosed.
Marsh & McLennan Agency said the acquisition makes it the country’s 13th largest insurance agency with annual revenue of $171 million.
Rutherfoord operates in the Southeast and mid-Atlantic regions. Established in 1916, the firm has annual revenues of $81 million, more than 300 employees, and 10 offices located from Philadelphia to the Gulf Coast region.
Rutherfoord’s top three executives, Thomas D. Rutherfoord, Jr., chairman, and vice-chairmen Thomas R. Brown and George A. “Shad” Steadman, III, will continue to lead the regional business. All of Rutherfoord’s employees will remain and join the MMA network.
David L. Eslick, chairman and CEO of Marsh & McLennan Agency, said Rutherfoord has a “wealth of specialized expertise and capabilities and brings us a strong operation in the Southeast and mid-Atlantic region.”
Rutherfoord will be the lead brokerage firm in the mid-Atlantic region and the District of Columbia for Marsh & McLennan Agency.
The firms said that the Virginia-based insurance broker would continue to operate under the Rutherfoord name for the foreseeable future.
Marsh & McLennan Agency LLC was established in 2008 to target mid-sized businesses in the U.S. It has been growing through acquisitions. Last month, it purchased Haake Companies, an $11 million agency in Overland Park, Kansas. Last December, it acquired New Jersey’s The NIA Group, which reported $62 million in revenue.
Was this article valuable?
Here are more articles you may enjoy.
Berkshire’s ‘Most Important’ Biz Drives Q1 Results; GEICO Still Behind on Tech 
Berkshire’s Jain on Cyber: ‘The Mindset Should Be You’re Not Making Money’ 
Ardonagh to Acquire Australia’s PSC Insurance Group for A$2.3 Billion 
Three Insurers Reject Chevron’s $57 Million Claim for Iran Oil Seizure From This Issue
