Frontenac Co., a Chicago-based private equity firm, announced that they have entered into a binding agreement with Near North National Group by which Near North will sell certain assets of its insurance brokerage operations to Frontenac.
The sale was rumored to be endangered by recent federal indictments against Near North related to the alleged embezzlement of $24 million in trust funds by owner Michael Segal, also under indictment on racketeering and fraud charges.
The sale will include assets of retail (Near North Insurance Brokerage), reinsurance (THB Intermediaries), structured settlement (Settlement Planning Associates) and excess/surplus lines (DMI Brokerage) operations in Chicago, Dallas, Las Vegas, London, Los Angeles, New York, Tampa and Washington, D.C. Terms of the agreement were not disclosed.
Upon completion of the sale, Dick Riley, a 35-year veteran of the insurance industry, will become CEO of the company. Robert Goss will assume the role of chief financial officer. Goss has over 24 years of finance experience, much of which was in the insurance industry. Riley and Goss will work together with Frontenac and the current management team to build on Near North’s 40-year tradition of innovation and service.
Segal, who quit as CEO earlier this year after being indicted, will serve Frontenac as a consultant, according to a story in Crain’s Chicago Business.
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