Business Moves

September 6, 2010

Hallmark Financial, State Auto National

Hallmark Insurance Co., a subsidiary of Hallmark Financial Services Inc. in Ft. Worth, Texas, plans to acquire State Auto National Insurance Co. from Ohio-based State Auto Financial Corp. (STFC).

State Auto National (SAN) writes approximately $37 million in non-standard automobile insurance coverage through independent agents in 21 states, around 80 percent (or $30 million) of which is retained by STFC under its intercompany reinsurance pooling agreement with its parent, State Automobile Mutual Insurance Co.

Hallmark said the purchase price for the acquisition will be $14 million cash at closing plus an earn-out of up to $2 million. Hallmark expects to fund the acquisition out of working capital. The cash portion is subject to post-closing adjustment to the extent the statutory capital and surplus of SAN is greater or less than $10 million.

The earn-out is payable quarterly in an amount equal to 2 percent of gross collected premiums on new or renewal personal lines insurance policies written by SAN agents during the three years following closing, according to the company.

STFC said it will retain liability for the preclosing book of business and will continue to provide policy and claims service to SAN policyholders until the policies are renewed with Hallmark.

Brooks Davis, president of Hallmark’s Personal Lines business unit, said while the business being acquired “is non-core to State Auto Financial Corp., it is very complementary to Hallmark’s personal lines portfolio.”

Pro Assurance Mid-Continent, Business Risk Partners

Connecticut-based Business Risk Partners purchased the renewal rights to the miscellaneous professional liability book of Houston-based ProAssurance Mid-Continent Underwriters Co. Underwriting on behalf of Lloyd’s, Business Risk Partners will offer renewal policies to any qualifying ProAssurance Mid-Continent insured. The transaction includes most segments of miscellaneous professional liability.

Bibby, Brilling & Associates, CAA

Combined Agents of America LLC (CAA) added a new member agency, Bibby, Brilling & Associates LLP (BBA), in Dallas. BBA is a full-service insurance agency that began in 2000 when two agencies – Bibby Insurance Agency, established in 1955, and Abe I. Brilling Insurance Agency, established in 1933 – joined forces. BBA’s second location, Arden Insurance Agency, is located in Ennis, Texas, and was established in 1918.

Magnolia, Iroquois Group

Magnolia Independent Insurance of Magnolia, Texas, joined The Iroquois Group, according to agency principal James E. McDonald. Magnolia Independent Insurance was founded in 2010. Iroquois is a network of property and casualty insurance agencies nationwide and lists more than 1,800 member agencies in 37 states.

Topics Texas

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Insurance Journal Magazine September 6, 2010
September 6, 2010
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