Business Moves

Fremont Michigan, Northern Mutual

Fremont Michigan InsuraCorp Inc., a Michigan-exclusive property and casualty insurance company headquartered in Fremont, Mich., and Northern Mutual Insurance Co. (Northern), a Michigan mutual insurer, have agreed to a strategic alliance between the two insurers. Northern intends to convert to a stock insurer and Fremont plans to acquire the stock of the converted insurer, according to an announcement released by the companies.

The terms of the proposed alliance are subject to Northern and Fremont entering into a mutually acceptable definitive agreement of the terms, including the consideration to be paid. In addition, the alliance is contingent upon the approval by the Commissioner of the Michigan Office of Financial and Insurance Regulation (OFIR).

In 2009, Northern had net written premiums of $8.9 million and total assets of $23.7 million at Dec. 31, 2009, both on a statutory basis. Fremont had net written premiums of $55.6 million in 2009 and total assets of $89.4 million ($105.3 million on a GAAP basis) at Dec. 31, 2009, on a statutory basis.

As previously reported, for the first quarter ended March 31, 2010, Fremont posted revenues of $14.9 million, up 9.4 percent compared to same quarter in 2009, and net income more than tripled, reflecting strength in premiums and the continued loyalty of agents and policyholders.

Fremont Michigan in late December rejected an unsolicited proposal from the Steak n Shake Company, now Biglari Holdings Inc., seeking to acquire control of the company.

Michigan Gov. Jennifer Granholm has signed a narrowly tailored bill designed to protect Fremont Michigan from such a takeover. The legislation requires that a perceived hostile takeover of a small insurer be approved by two-thirds of the shareholders of the targeted company, rather than by a simple majority.

McManus Agency

Longtime insurance industry professionals Ryan and Roger McManus recently announced the opening of the McManus Agency in Medina, Ohio.

President Ryan McManus and Director of Operations Roger McManus are both experienced veterans of the property/casualty insurance industry.

Ryan McManus began his career with the independent reinsurance intermediary, Benfield Group, in Connecticut. After moving back to Ohio, he engaged in retail insurance sales for Oswald Companies.

Roger McManus has more than 30 years’ experience in the property and casualty insurance market. He previously held various leadership positions at Westfield Insurance, including president and chief operating officer.

The McManus Agency specializes in commercial insurance, including niche industries such as motorsports accounts, aviation and long haul trucking customers. It also maintains a specialty in clients with high valued homes, vehicles and umbrella limits. Life and annuity products are also offered.

Francis L. Dean & Associates, Inc.

Sports, leisure and entertainment risks insurance provider Francis L. Dean & Associates Inc. has opened a new location in Fort Wayne, Ind. Francis L. Dean & Associates of Indiana LLC is the company’s sixth location. It will provide underwriting, product development, marketing and policy issuance on a national basis.

The location is managed by Dale Johnson, who is assisted by Tami Eliason. They each have a vast knowledge of the sports, leisure and entertainment industry with more than 30 years of combined experience.

The Indiana office will specialize in fairs and festivals, as well as all other Francis L. Dean products.

Ohio School Plan, Hylant

The Ohio School Plan (OSP), a group that provides insurance and risk management solutions to Ohio public school entities and boards of developmental disabilities, approved the decision to include community colleges into their membership. The OSP also has specialized risk management services and claim services designed specifically for educational entities.

Hylant Administrative Services provides the day-to-day administration of the OSP and is the largest public entity program administrator in Ohio. Hylant Administrative Services is a division of Hylant Group, one of the largest privately owned insurance brokerage firms in the country.

Argent, West Bend Mutual

Argent, West Bend Mutual Insurance Company’s monoline workers’ compensation division, has moved from West Bend’s home office to a new division home in Waukesha, Wis. The office currently has a staff of 10 and Argent expects to create 30 new positions in the Waukesha office during the next three years. Argent has already secured several new accounts, according to Paul Hingtgen, vice president.

Argent works closely with both the independent insurance agency and the insured to improve their workers’ compensation performance, the company’s announcement said.

Argent, derived from argentum, the Latin term for silver, was named, in part, because of silver’s historical use as a medicine.

Personal Lines GA, Mercury Insurance

The Personal Lines Growth Alliance (PLGA), a coalition within the independent agency system, announced that Mercury Insurance Group is a founding financial partner. Mercury is the first insurance carrier to become a financial partner, according to PLGA Chair Steve Brooks, also president of Steve Brooks Insurance Services based in Westlake Village, Calif.

Mercury is a multi-line insurance organization offering predominantly personal automobile and homeowners insurance through independent agents and brokers in California, Florida, New Jersey, Texas, Arizona, New York, Georgia, Oklahoma, Illinois, Michigan, Nevada, Virginia and Pennsylvania.

The Personal Lines Growth Alliance launched in February 2010 as a virtual association dedicated to improving the competitiveness of the independent agency distribution channel. The Alliance is backed by more than 200 independent agencies and brokers, trade associations and user groups, national and regional carriers, and several technology providers.

Topics Ohio Michigan