Business Moves

World Insurance Associates, AIV Group

World Insurance Associates, an independent insurance agency based in Tinton Falls, N.J., has acquired AIV Group, an insurance agency serving the Asian community.

AIV Group, in Avenel, N.J., was founded in 2010 by Sonali Shah, who will now join World Insurance Associates as a principal.

Terms of the deal were not disclosed.

AIV Group specializes in insurance for hospitality, real estate, professional services and retail sectors for the Asian community.

World Insurance Associates sells in 41 states and specializes in insurance for transportation companies, the hospitality industry, coastal properties, and high-net worth individuals in addition to general commercial clients in diverse industries.

World Insurance Associates was founded in 2012 and has eight offices in New Jersey, Pennsylvania and New York. It has completed 14 acquisitions.

Cross Insurance, Sargent, Tyler & West

Maine’s Cross Insurance has acquired another Maine insurance agency, Sargent, Tyler & West in Bangor, and its Bucksport branch office, Roland Grindle Insurance Agency.

Sargent, Tyler & West has been in business for nearly 200 years. Michael Shea is president.

Cross plans to merge the accounts with its own Bangor office. The Bucksport office will remain a separate branch office.

Berkshire Hathaway, Medical Liability Mutual Insurance Co.

Berkshire Hathaway subsidiary National Indemnity Co. is acquiring Medical Liability Mutual Insurance Co. of New York for an undisclosed price.

The deal comes as the insurer completes its conversation from a mutual company to a stock insurer.

The insurer is the largest underwriter of medical professional liability insurance in New York. MLMIC reported $1.8 billion in policyholders’ surplus as of Dec. 31, 2015.

The deal will close in the 2017 third quarter, pending the usual closing conditions and regulatory approval processes.

Berkshire Hathaway CEO Warren Buffett called MLMIC “a gem of a company that has protected New York’s physicians, midlevel providers, hospitals and dentists like no other for over 40 years.” He said the acquisition will help boost the insurer’s “capacity to serve these and other policyholders for many years to come.”

Once the deal is completed, each owner of an eligible MLMIC policy will be entitled to receive a proportionate share of all of the cash consideration paid by National Indemnity Co.

MLMIC President Robert Menotti said the acquisition will allow MLMIC to expand, with more customized policy limits, risk-sharing features and services to groups, facilities, and other large accounts.

Menotti added that Berkshire Hathaway is also committed to keeping MLMIC’s culture and approach.

In 2012, Berkshire Hathaway’s medical professional liability insurance unit, Medical Protective Co., purchased New Jersey-based Princeton Insurance Co., a professional liability insurer for healthcare providers, which was previously owned by Medical Liability Mutual Insurance Co.

Berkshire Hathaway had acquired Medical Protective Corp. from GE for $825 million in 2005.

More recently, last July, Berkshire Hathaway’s MedPro Group agreed to acquire Oklahoma healthcare liability insurer PLICO Inc., which is owned by the Oklahoma State Medical Association.

National Interstate, Great American

National Interstate Corp. based in Richfield, Ohio, has agreed to be acquired by Great American Insurance Co., a subsidiary of American Financial Group Inc. (AFG).

Under the terms of the agreement, Great American will acquire approximately 49 percent of the company’s issued and outstanding common shares that Great American does not presently own.

The merger is an all-cash transaction that values National Interstate at approximately $660 million, including assumption of debt in connection with the merger.

National Interstate is the holding company for a specialty property/casualty insurance group that offers products and services designed to meet the unique needs of niche markets.

Great American is a property/ casualty insurance company, focusing on specialty commercial products for businesses, and in the sale of traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets.

The proposed merger is expected to close in the fourth quarter of 2016, subject to approval by the Great American shareholders and regulatory authorities, as well as the satisfaction or waiver of customary closing conditions.

National Interstate Corp. was founded in 1989. Insurance subsidiaries include the three primary insurers, National Interstate Insurance Co., Vanliner Insurance Co. and Triumphe Casualty Co.

Heartland Crop Insurance, CGB Diversified Services

Bermuda’s Everest Re Group is selling its U.S. crop insurance company, Heartland Crop Insurance Inc., to CGB Diversified Services Inc., a crop insurance, transportation and storage firm in Illinois.

Upon completion of the sale, Everest Re will provide quota share reinsurance capacity on the combined crop insurance portfolio of the Diversified/Heartland companies.

CGB offers crop insurance products and services to farmers across 38 states.

This transaction is contingent upon all customary closing provisions, including all required regulatory and board approvals.

Diversified Services is headquartered in Jacksonville, Ill. It offers crop insurance, risk management and grain marketing expertise.

Everest Re Group provides reinsurance to property/casualty insurers in both the U.S. and international markets

Mesirow, Alliant
Chicago-based Mesirow Insurance Services (MIS), a division of Mesirow Financial, has joined Alliant Insurance Services’ middle-market platform, Alliant Americas. Terms of the agreement were not disclosed.

Founded in 1972, MIS is a full-service insurance brokerage and consultant specializing in property/casualty insurance, employee benefits, life and disability, private client insurance, and structured settlements. Mesirow Financial is an 80-year-old independent, employee-owned financial services firm.

MIS will continue to operate under its existing organizational structure, with the MIS leadership team and division employees joining Alliant. In addition, MIS will continue to operate satellite offices in Illinois and Denver.

Alliant is headquartered in Newport Beach, Calif.

HGGC, Integrity, Premier

Palo Alto, Calif.-based middle market private equity firm HGGC, has completed its equity investment in Integrity Marketing Group LLC, an independent distributor of life/ health insurance products focused on serving the senior market.

Concurrently, HGGC and Integrity announced they will acquire Norfolk, Neb.-based Premier Companies Inc., an insurance marketing organization.

Topics New York Alliant