2012 Insurance M&A Snapshot

Article

Here is a snapshot of the property/casualty insurance industry merger and acquisition activity reported byInsurance Journal in 2012.

Major carrier transactions included Nationwide’s acquisition of Harleysville, The Hartford’s selling of its life units, Allegheny and Transatlantic completing their merger, and Markel’s announced intention to acquire Alterra. There were several transactions involving medical malpractice insurers.

There was considerable activity in the wholesaler/MGA/program administrator space. BB&T completed its $570 million acquisition of Crump Insurance units.

Ryan Specialty, AmWins and Bollinger proved to be active buyers.

In the agency space, Illinois-based insurance broker Arthur J. Gallagher left other insurance agency buyers in the dust in 2012, scoring or announcing 26 acquisitions, far more than any other buyer. Five of its acquisitions were in its home state of Illinois. Brown & Brown, Confie Seguros, Marsh, Assured Partners/Neace Lukens and USI were also busy.

Two of the most active buyers, Confie Seguros and USI, were themselves bought. ABRY partners acquired a majority of the equity of the large personal lines insurance broker Confie Seguros from Calif.-based Genstar Capital. Canadian private equity firm Onex Corp. acquired USI Insurance Services from Goldman Sachs Group’s GS Capital Partners for approximately $2.3 billion.

In addition to those agencies that were busy in 2012,Insurance Journal reporters indicate buyers to watch in 2013 include Aon and Wells Fargo. The following are 2012 transactions or announcements of note. Special thanks to this year’s “Insurance M&A Snapshot” sponsor MarshBerry.

Carriers

MEDPRO COMPLETES ACQUISITION OF NEW JERSEY-BASED PRINCETON INSURANCE
CHARTIS ACQUIRES WARRANTY SERVICES PROVIDER SERVICE NET
ALLEGHANY AND TRANSATLANTIC COMPLETE MERGER
ONEBEACON COMPLETES SALE OF AUTOONE BUSINESS TO NEW YORK’S INTERBORO
GOLDMAN SACHS COMPLETES ACQUISITION OF ARIEL RE’S BERMUDA OPERATIONS ARCH CAPITAL COMPLETES ACQUISITION OF ARIEL RE’S CREDIT & SURETY REINSURANCE
HSBC SELLS GENERAL INSURANCE BUSINESS TO AXA, QBE FOR $914 MILLION
TOKIO MARINE BUYOUT OF INSURER DELPHI ALLOWED TO PROCEED
HARTFORD BOWS TO SHAREHOLDER PAULSON, SELLS MOST LIFE UNITS
SOUTHEAST NON-STANDARD AUTO INSURER PEACHTREE ACQUIRED BY CALIFORNIA EQUITY FIRM
LIBERTY MUTUAL ACQUIRES KIT FINANCE, ENTERS RUSSIAN AUTO INSURANCE MARKET
NORTH CAROLINA’S RED VENTURES BUYS HOMEINSURANCE.COM
WORKERS’ COMP INSURER BRICKSTREET ACQUIRES PENNCOMMONWEALTH
CANOPIUS TO BUY LLOYD’S OMEGA INSURANCE FOR $265 MILLION
TOWER GROUP TO INVEST IN LLOYD’S CANOPIUS
NATIONWIDE MUTUAL COMPLETES HARLEYSVILLE MERGER
FLEXPOINT FORD AGREES TO ACQUIRE GEOVERA FROM HELLMAN & FRIEDMAN
WESTERN NATIONAL COMPLETES PURCHASE OF AMERICAN FREEDOM INSURANCE
HILLTOP HOLDINGS, PLAINSCAPITAL CORP. SIGN MERGER AGREEMENT
MARYLAND’S STATE-RUN WC INSURER IWIF TO BECOME PRIVATE NONPROFIT
PRIVATE EQUITY FIRM SOUTHPORT LANE TO ACQUIRE DALLAS NATIONAL INSURANCE CO.
SOUTHPORT LANE ACQUIRES REDWOOD REINSURANCE
RSA ACQUIRES QUEBEC INSURER L’UNION CANADIENNE
LEXON BUYS FLORIDA’S PENINSULAR SURETY
FAIRFAX RUNOFF SUB RIVERSTONE TO ACQUIRE BRIT INSURANCE LTD.
WHITE MOUNTAINS ACQUIRES 2 PICO HOLDINGS INSURERS IN RUN-OFF
INDEPENDENT NEVADA DOCTORS INSURANCE EXCHANGE TO MERGE WITH PROASSURANCE
MEDICAL LIABILITY INSURER PROASSURANCE TO ACQUIRE MEDMARC IN VIRGINIA
CNA COMPLETES ACQUISITION OF HARDY UNDERWRITING BERMUDA LTD. FOR $230 MILLION
CATALINA HOLDINGS ACQUIRING TWO INSURANCE OPERATIONS FROM HSBC
MAIN STREET AMERICA, AUSTIN MUTUAL INSURANCE AFFILIATION FINALIZED
THE HARTFORD SELLS LIFE PRIVATE PLACEMENT UNIT TO PHILADELPHIA FINANCIAL
METLIFE ACQUIRES GEORGIA’S REYNOLDS PLANTATION
PHYSICIANS INSURANCE ACQUIRES EMPAC/SCRUBS
ZURICH TO TRANSFER AUTOMOTIVE AFTERMARKET BUSINESS TO ARROWHEAD
FLAGSTONE RE COMPLETES THE SALE OF LLOYD’S OPERATION TO ANV
VALIDUS TO BUY FLAGSTONE RE FOR $600 MILLION IN CASH AND STOCK
THE HARTFORD TO SELL RETIREMENT PLAN UNIT TO MASSMUTUAL
DUBAI GROUP SELLS TURKEY INSURANCE UNIT TO STARR, OMAN INSURANCE
ACE ACQUIRES 80% OF INDONESIA INSURER ASURANSI JAYA PROTEKSI
AGEAS TO ACQUIRE GROUPAMA INSURANCE (UK)
CATALINA ACQUIRES RUNOFF VEHICLE KX RE FROM TAWA
AMERICAN FAMILY ACQUIRING PERMANENT GENERAL, LUMBERMENS CASUALTY
PRUDENTIAL TO PAY $615 MILLION FOR HARTFORD’S LIFE INSURANCE UNIT
ING TO SELL MALAYSIAN INSURANCE UNIT TO AIA FOR $1.73 BILLION
ONEBEACON CUTS TIES WITH HAGERTY AGENCIES, SELLING ESSENTIA TO MARKEL
ONEBEACON SELLING RUNOFF BUSINESS TO BERMUDA’S ARMOUR GROUP
ALLY FINANCIAL TO SELL MEXICAN INSURANCE BUSINESS TO ACE
HONG KONG’S LI RETURNS TO INSURANCE WITH $2.1 BILLION ING DEAL
PENN. REGULATORS APPROVE PENDING SALE OF ISREAL’S CLAL’S U.S. UNIT TO BERKSHIRE’S NATIONAL INDEMNITY
THE DOCTORS CO. TO ACQUIRE UTAH MEDICAL INSURANCE ASSOCIATION
RLI ACQUIRES MEDICAL MALPRACTICE UNDERWRITING AGENCY
RLI ACQUIRES HOUSTON’S ROCKBRIDGE UNDERWRITING AGENCY
METLIFE TO SELL MORTGAGE SERVICE UNIT, FOCUS ON INSURANCE OPERATIONS
ENDURANCE ACQUIRES GALILEO WEATHER RISK
AIG, OTHERS TO TAKE UP HALF OF CHINA PICC’S $3.6 BILLION HONG KONG IPO
AIG ACQUIRES THE HARTFORD’S FINANCIAL ADVISORY GROUP WOODBURY
WHITE MOUNTAINS COMPLETES ACQUISITIONS OF AIG, PICO RUNOFFS
THAI GROUP BUYS PING IN STAKE FROM HSBC FOR $9.38 BILLION
CHINESE GROUP TO BUY AIG’S PLANE LEASING UNIT FOR UP TO $4.8 BILLION
TREASURY COMPLETES FINAL SALE OF AIG STOCK
PARTNERRE TO ACQUIRE CALIF.-BASED PRESIDIO RE GROUP
MARKEL ACQUIRING ALTERRA FOR $3.1B
RSA ANNOUNCES SALE OF DUTCH CARIBBEAN OPERATION
ZURICH TRANSFERS EAGLE STAR TO RIVERSTONE; IRISH BANKING BUSINESS TO DUNBAR

Wholesalers/MGA/Program Managers

PENN.-BASED GLATFELTER ACQUIRES FAITH-BASED AND SENIOR LIVING PROGRAMS

N.J.-BASED BOLLINGER ACQUIRES ARGENT PROFESSIONAL INSURANCE AGENCY

R-T SPECIALTY ACQUIRES TEXAS INSURANCE WHOLESALER MACLEAN, ODDY & ASSOCIATES

R-T TO ACQUIRE WORKERS’ COMP WHOLESALER IFIS IN CALIFORNIA

IMAC ACQUIRES CHICAGO-BASED SPECIALTY SERVICE SOLUTIONS

U.S. WHOLESALE BROKER AMWINS COMPLETES ACQUISITION OF LONDON’S THB

KAUFMAN FINANCIAL ACQUIRES LONDON’S CHESTERFIELD GROUP, TEXAS MGA

K2 ACQUIRES MAJORITY STAKE IN MIDWESTERN INSURANCE ALLIANCE

BB&T COMPLETES $570M ACQUISITION OF CRUMP INSURANCE UNITS

N.J.-BASED BROKER BOLLINGER ACQUIRES CREATIVE AGENCY GROUP

WORLDWIDE FACILITIES ACQUIRES N.Y.-BASED WHOLESALER PRIVETT

THE MCGOWAN COS. PURCHASES MD.-BASED ALLIED INSURANCE BROKERS

STOERMER INSURANCE TO ASSUME ACCOUNTS OF BLACK/WHITE & ASSOC.

PGI ACQUIRES N.Y.-BASED PROGRAM ADMINISTRATOR AMERICAN ALTAIR GROUP

PERSONABLE INSURANCE ACQUIRES TEXAS-BASED ENDEAVOR GENERAL AGENCY

R K HARRISON COMPLETES SPECIALTY LINES PURCHASE FROM GIBBS HARTLEY COOPER

AMWINS GROUP COMPLETES RECAPITALIZATION DEAL

N.Y.-BASED BROKER STERLING & STERLING, HYDE AGENCY FORM JOINT VENTURE

RYAN SPECIALTY TO BUY DIRECT GROUP IN UK

AMWINS BUYS WISCONSIN SCHOOL INSURANCE BROKER, SMIC

RYAN SPECIALTY GROUP ACQUIRES ATLANTIC STAR INTERMEDIARIES IN NEW YORK

RYAN SPECIALTY GROUP TO ACQUIRE WKFC UNDERWRITING MANAGERS

CRC/CRUMP ACQUIRES PREFERRED BROKERAGE UNIT OF PREFERRED CONCEPTS

N.J. BROKERAGE BOLLINGER ACQUIRES THE MORVILLE AGENCY

PREFERRED CONCEPTS ACQUIRES METRO INSURANCE SERVICES IN NEW JERSEY

KAUFMAN FINANCIAL GROUP ACQUIRES PREMIUM INSURANCE AUDITOR

PROWRITERS ACQUIRED; OPENS AS INDEPENDENT MANAGING GENERAL UNDERWRITER

IDP HOLDINGS ACQUIRES NSU’S HOSPITALITY PROGRAM IN WASHINGTON

PENN.-BASED W.N. TUSCANO BUYS SPECIAL RISK SOLUTIONS FROM UTICA MUTUAL

AMWINS GROUP TO ACQUIRE GEORGIA-BASED GRESHAM & ASSOCIATES

BROWN & RIDING IN CALIFORNIA MERGES WITH TRAVIS-PEDERSEN

UTAH-BASED VERACITY ACQUIRES STRATUS INSURANCE SERVICES

KKR TO ACQUIRE ALLIANT INSURANCE FROM BLACKSTONE

CALIFORNIA’S TRINITY INSURANCE SERVICES BOUGHT BY MCNEIL & CO. OF NEW YORK

Most Active Agency Buyers

Arthur J. Gallagher

CAPITAL BAUER INSURANCEIN ALBANY, N.Y.
SOUTH CAROLINA’S RILEY & ASSOCIATES
PROSOURCE FINANCIAL IN ILLINOIS
LOUISIANA MGA, FIRST PREMIUM
DALLAS-BASED WISCHMEYER BENEFIT PARTNERS
HUMAN RESOURCE MANAGEMENT SYSTEMS IN ILLINOIS
CANADIAN BROKER BENEFITLINK RESOURCE GROUP
LOUISIANA’S BESSELMAN & LITTLE AGENCY
OHIO’S SCHIFF, KREIDLER-SHELL
UK’S INSURANCE DIALOGUE LIMITED
PROFESSIONAL CLAIMS MANAGERS OF DALLAS
GROSSMAN & ASSOCIATES OF OHIO
BROKER BENEFIT SERVICES IN MISSOURI
ALABAMA’S WHITEHAVEN INSURANCE
MILLER BUETTNER & PARROTT INC. IN ILLINOIS
TRIAD USA IN PENNSYLVANIA
GRACE/MAYER INSURANCE AGENCY OF NEBRASKA
TEXAS-BASED SUNDAY AND ASSOCIATES
COYLE INSURANCE AGENCY OF ILLINOIS
UNISON INC. OF MINNESOTA
PARK ROW ASSOCIATES IN RHODE ISLAND
AIRES CONSULTING GROUP OF ILLINOIS
NEBRASKA’S BRENDIS & BRENDIS
MICHIGAN’S CHARTER LAKES MARINE INSURANCE AGENCY
WESTERN BENEFIT SOLUTIONS OF IDAHO
AHROLD FAY ROSENBERG OF IOWA

Confie Seguros

POWER AUTO IN CALIFORNIA
SURVIVAL INSURANCE IN CALIFORNIA
SPEEDLANE INSURANCE IN CALIFORNIA
THE CHAPMAN AGENCY, IN NEW JERSEY
COPPOLA INSURANCE IN NEW YORK
PALMETTO INSURANCE, IN FLORIDA
DALEY INSURANCE IN FLORIDA
BRADLEY INSURANCE AGENCY IN NEVADA
A AUTO INSURANCE WORLD OF FLORIDA
WESTSIDE AUTO, ONTARIO, CANADA
STONEWOOD INSURANCE SERVICES IN CALIFORNIA
MAURISSET INSURANCE IN FLORIDA
CNS INSURANCE SERVICES IN FLORIDA
BRIAR BAY INSURANCE IN FLORIDA
GOT INSURANCE OF LAS VEGAS, NEVADA

Brown & Brown

ARROWHEAD GENERAL INSURANCE AGENCY IN CALIFORNIA
D. BEZONA & COMPANY IN CALIFORNIA
MOTEN ASSOCIATES IN PENNSYLVANIA
MASS.-BASED RICHARD W. ENDLAR INSURANCE
INSURCORP IN NEVADA
BEHNKE & ASSOCIATES IN FLORIDA
GILBERT RV INSURANCE IN FLORIDA
ROWLANDS & BARRANCA AGENCY IN NEW YORK
RV AMERICA INSURANCE MARKETING IN KENTUCKY
LET’S TALK INSURANCE INC. IN KENTUCKY
JOHNSON & STRACHAN, INC. IN VIRGINIA
EDGREN HECKER & LEMMON INSURANCE IN WASHINGTON
TEXAS SECURITY GENERAL INSURANCE AGENCY, INC. IN TEXAS
ZURCH TRANSFERS AUTOMOTIVE AFTERMARKET BUSINESS TO ARROWHEAD

Marsh/Marsh & McLennan Agency

AFRICA’S ALEXANDER FORBES’ BROKERAGE BUSINESS
KSPH IN VIRGINIA
COSMOS SERVICES, A UNIT OF JAPAN’S ITOCHU CORP.
PROGRESSIVE BENEFIT SOLUTIONS IN NORTH CAROLINA
SECURITY INSURANCE SERVICES IN WISCONSIN
SOUTH CAROLINA’S ROSENFELD EINSTEIN
SOUTH DAKOTA’S HOWALT+MCDOWELL INSURANCE
PROTECTOR GROUP IN MASSACHUSETTS
OHIO’S BROWER INSURANCE AGENCY
INDEPENDENT INSURANCE GROUP BENEFITS IN TEXAS

Assured Partners/Neace Lukens

KENTUCKY’S BERRYMAN AGENCY
INDIANA’S JENKINS INSURANCE SERVICES
INDIANA’S MATRIX BENEFITS AND CONSULTING GROUP
KENTUCKY’S MOREHEAD INSURANCE
SOUTH CAROLINA’S GOSNELL AGENCY
DAVIS-GARVIN AGENCY IN SOUTH CAROLINA
DAWSON COMPANIES IN OHIO
MOORE & JOHNSON IN NORTH CAROLINA
SCHIFMAN REMLEY AND ASSOCIATES INC. IN KANSAS
R. STANFORD WEBB AGENCY INC. IN NORTH CAROLINA

USI

VIRGINIA’S THE PINNACLE GROUP
ILLINOIS-BASED EUCLID INSURANCE RETAIL BUSINESS
NATIONAL INSURANCE SPECIALISTS IN OHIO
GEORGIA’S IMPACT BENEFIT MANAGEMENT SERVICES
LYNCH, BERETTA AND BUCCI INSURANCE IN RHODE ISLAND
KELLY INSURANCE BROKERAGE IN NEW YORK
FLORIDA’S SUNCOAST ASSOCIATES
CANADIAN TD BANK’S U.S. INSURANCE SUBSIDIARY
COMPASS INSURANCE IN ALABAMA

Notheworthy Agency/Broker Transactions

HUB ACQUIRES ASSOCIATED INDEPENDENT AGENCIES INC. (AIA) IN WASHINGTON
TDECU INSURANCE AGENCY ACQUIRES ASSOCIATED INSURANCE ADVISORS IN HOUSTON
BOLTON & COMPANY ACQUIRES PACIFIC GENERAL INSURANCE SERVICES, CALIFORNIA
UPA INSURANCE BROKERS IN CALIFORNIA ACQUIRED BY RISK STRATEGIES
ASCENSION INSURANCE ACQUIRES THIRD NORTH CAROLINA’S FALCONE WILLIAMS
DIGITAL INSURANCE BUYS VA.-BASED STRATEGIC EMPLOYEE BENEFITS SERVICES
PSA ACQUIRES BALTIMORE OFFICE OF EDGEWOOD PARTNERS INSURANCE CENTER
DIRECT-LINK ACQUIRES SOUTHERN CALIFORNIA FIRM CUMBRE
VENTURA PARTNERS ACQUIRES CALIFORNIA’S BARLOCKER, FORMS COASTAL STATES
LUBBOCK OFFICE OF SHOFNER, LYNCH & SHULSE JOINS MCQUEARY HENRY BOWLES TROY IN DALLAS
TDECU INSURANCE ACQUIRES ASSURANCE INSURANCE AGENCY IN TEXAS
TDECU INSURANCE ACQUIRES BURRIDGE INSURANCE AGENCY BASED IN TEXAS
THE BUCKNER CO. ACQUIRES LEONARDSON INSURANCE IN IDAHO
FLORIDA HARBOR AGENCY ACQUIRES FIDELITY INSURANCE ASSOCIATES
IN TEXAS, TOWN & COUNTRY INSURANCE AGENCY COMPLETES WHITTINGTON ACQUISITION
PALOMAR BUYS MARTIN GRACE BENEFIT GROUP IN ALABAMA
BELL-ANDERSON IN WASHINGTON ACQUIRES MICHAEL J. GIRIAS
POMS ACQUIRES STONE, HARRIS & STONE IN CALIFORNIA
BENEFITSPECIALISTS JOINS HIGGINBOTHAM INSURANCE GROUP IN TEXAS
STAHLKA AGENCY ACQUIRES HISTORIC SQUARE AGENCY’S WESTERN N.Y. PRACTICE
MICHIGAN’S INPRO INSURANCE GROUP ACQUIRES FALVAY-COUNIHAN INSURANCE
BANCORPSOUTH INSURANCE ACQUIRES ALABAMA AGENCY, SECURANCE GROUP
CBIZ ACQUIRES TEXAS-BASED STOLZ AND CO.
SEBS OF THE MIDWEST MERGES WITH DIGITAL BENEFIT ADVISORS’ CHICAGO OFFICE
WHITFIELD UNITED INSURANCE AGENCIES IN WASHINGTON JOIN THE LEAVITT GROUP
COVERICA ACQUIRES ASSETS OF DALLAS-BASED UNIMARK INSURANCE
BOLTON ACQUIRES REAUME FINANCIAL GROUP IN CALIFORNIA
DIGITAL INSURANCE ACQUIRES DSG BENEFITS GROUP IN DALLAS
INTEGRO BUYS UK MEDIA INSURANCE BROKER
MCGOWAN PURCHASES ASSETS OF CGA ASSOCIATES IN OHIO
ASCENSION ACQUIRES MODERN SERVICES INSURANCE IN ATLANTA
BOLT BUYS 2 FLORIDA AGENCIES: PRG AND FLORIDA DIRECT
DIGITIAL INSURANCE ACQUIRES KNOXVILLE’S FIRST BENEFIT PARTNERS
OHIO’S NORMAN-SPENCER AGENCY ACQUIRES N.Y.-BASED KEENAN MARINE AGENCY
CBIZ ACQUIRES TRINITY RISK ADVISORS OF ATLANTA
NEW YORK’S COOK, HALL & HYDE TO MERGE WITH MARAN CORPORATE RISK ASSOCIATES
DIGITAL INSURANCE BUYS NORTH CAROLINA’S STRATEGIC BENEFIT SOLUTIONS
HUB INTERNATIONAL EXPANDS IN CARIBBEAN WITH PUERTO RICO BROKER BUY
LOCKTON DUNNING BENEFITS ACQUIRES EXCELSIOR SOLUTIONS IN MINNESOTA
MJ INSURANCE ACQUIRES INDIANAPOLIS-BASED MEAD & COMPANY
POWTER ACQUIRES JORDAN IN TEXAS
CBIZ BUYS LEAVITT PACIFIC’S EMPLOYEE BENEFITS IN CALIFORNIA
HUB ACQUIRES RAINTREE INSURANCE AGENCY IN CALIFORNIA
THE HORTON GROUP, CASSADY NEESER & BRASSEUR MERGE
RISK INNOVATIONS ACQUIRING WORK COMP BUSINESS OF MISSOURI’S TAS INSURANCE GROUP
RISK STRATEGIES CO. ACQUIRES D&D INSURANCE AGENCY IN MASSACHUSETTS
NORTHWEST SAVINGS BANK ACQUIRES BERT INSURANCE GROUP OF PENNSYLVANIA
WILLIS NORTH AMERICA TO ACQUIRE CANADIAN BENEFITS BROKER AVALON ACTUARIAL
COASTAL INSURANCE GROUP BECOMES A HIGGINBOTHAM COMPANY
INTEGRO ACQUIRES SOUTHERN CALIFORNIA’S THE RULE GROUP