Obviously One Beacon does not see a future in these segments/territory but sees value in selling for a risk-free fee for every account that Hanover should write. With current market conditions Hanover will be force to compete at a time when rates may be near or below loss costs. Unless the market conditions change soon (not likely), this could be a future problem for profitability
Charlie and Mike: Your comments are “spot on”. In addition, One Beacon has a very smart CEO, Mike Miller……..Hanover has “Fred”. Recall that Fred Eppinger is a Hartford Alum, but when the CEO position came open at Hartford, Fred wasn’t even on the long list, much less the short list. This is clearly another example of a company going into a part of the country where they have no knowledge or understanding and they will get burned. If you own Hanover stock, selling now would be a good idea!
OneBACON people are shrewd and sharp. No stone is ever left unturned when seeking a profitable dollar! They would not be selling to Hanover unless they knew it was/would not be profitable….bend over Hanover…here it COMES!
J.M.: Good observation on their hiring practices……..What is new is that Hanover has never written business in these states. California has 18% unemployment which means lot of small businesses are going under which means lots of restaurants will have fires. Arizona didn’t have an insurance friendly reputation when the economy was robust, so going into that state now is not smart. Same is true to a lesser extent for Colorado and New Mexico. I think “Hey Zeus” has it right. Bend over early and often, Fred!
Very interesting aspect on all points. OneBeacon must be refocusing on policies that they forsee to be more profitiable in the coming future. Look for them to use the newly acquired $23 million war chest to go after the most profitable policies.
Hanover gets the cash flow (that will diminish with time) while OneBeacon gets the cash to go after policies that will grow.
Gee… the more things change the more they stay the same. This is the same One Beacon that beat feet from CA about 10 years ago… Hanover left a bit before then after they’d wrung the money out of their California Compensation & Fire acquisition in the 70’s. Just remember, this is a cyclical business… what goes around … comes around again.
I give up….Who is this Peter der (whatever) and what company does he run?
Midwest Agent-Glad this is working for you. Hope Hanover is successful, but their strategy on the West Coast doesn’t make sense. I agree with you that more companies should cater to Midwest Agents. They would make a more money if they did!
The Hanover is the hottest moving market in the Midwest right now. They’re spending money to invest in their agents, and they are hiring the best people in the industry. Some of these other so-called Super Regionals should take a lesson from Hanover and the things they are doing to grow at the turn of the market. They are very well positioned, while other carriers are more worried about cutbacks, budget slashing, etc. Other carriers don’t care about us agents, but Hanover is investing in us, and they are growing!
then again, here in Wisconsin i am not sure that any of the carriers have any money left. They are all quivering from their combined ratios.
Do you need middle to upper management support for this venture? 40 years all venue, commercial underwriting/marketing accounts experience. The cultural and agency plant transition could be a little trickier than you think. If nothing else, this form of contact can tell you something of my entrepreneurial/profit focus. Located in Arizona — moving is not out of the question but prefer to stay here.
The boys at One Bacon are at it again. They just turned over Interboro Insurance Co. on the east coast by selling them their book of Auto One business in several state. Interboro is just out of rehab. They must like it there very much. With their current leadership or lack of it, BOHCA. Bend over, here it comes. White Mountain has a habit of picking companies to the bone. Look what they did to Atlantic Mutual, aka Ace Private Risk Mgt. They bought their commercial lines and walked out with their entire infrastructure. Of Course they did not pay for that.
Why is One Beacon walking away from this business?
hanover needs premium; onebeacon doesnt want “that” business anymore…
Obviously One Beacon does not see a future in these segments/territory but sees value in selling for a risk-free fee for every account that Hanover should write. With current market conditions Hanover will be force to compete at a time when rates may be near or below loss costs. Unless the market conditions change soon (not likely), this could be a future problem for profitability
Charlie and Mike: Your comments are “spot on”. In addition, One Beacon has a very smart CEO, Mike Miller……..Hanover has “Fred”. Recall that Fred Eppinger is a Hartford Alum, but when the CEO position came open at Hartford, Fred wasn’t even on the long list, much less the short list. This is clearly another example of a company going into a part of the country where they have no knowledge or understanding and they will get burned. If you own Hanover stock, selling now would be a good idea!
OneBACON people are shrewd and sharp. No stone is ever left unturned when seeking a profitable dollar! They would not be selling to Hanover unless they knew it was/would not be profitable….bend over Hanover…here it COMES!
None of these new industry groups are any that Hanover didn’t write once or twice in the past and hav walked away from as well. So, what’s new?
As far as their “new CEO” Hanover has a history of hiring folks based on where their house is located, not if they are the best person for the job
Some things never change
J.M.: Good observation on their hiring practices……..What is new is that Hanover has never written business in these states. California has 18% unemployment which means lot of small businesses are going under which means lots of restaurants will have fires. Arizona didn’t have an insurance friendly reputation when the economy was robust, so going into that state now is not smart. Same is true to a lesser extent for Colorado and New Mexico. I think “Hey Zeus” has it right. Bend over early and often, Fred!
Very interesting aspect on all points. OneBeacon must be refocusing on policies that they forsee to be more profitiable in the coming future. Look for them to use the newly acquired $23 million war chest to go after the most profitable policies.
Hanover gets the cash flow (that will diminish with time) while OneBeacon gets the cash to go after policies that will grow.
I’d call it shewd business for the Beacon.
Gee… the more things change the more they stay the same. This is the same One Beacon that beat feet from CA about 10 years ago… Hanover left a bit before then after they’d wrung the money out of their California Compensation & Fire acquisition in the 70’s. Just remember, this is a cyclical business… what goes around … comes around again.
Well at least you guys don’t have Peter der Biking Schweizer trying to run your company. He has made a complete mess of ours.
I give up….Who is this Peter der (whatever) and what company does he run?
Midwest Agent-Glad this is working for you. Hope Hanover is successful, but their strategy on the West Coast doesn’t make sense. I agree with you that more companies should cater to Midwest Agents. They would make a more money if they did!
The Hanover is the hottest moving market in the Midwest right now. They’re spending money to invest in their agents, and they are hiring the best people in the industry. Some of these other so-called Super Regionals should take a lesson from Hanover and the things they are doing to grow at the turn of the market. They are very well positioned, while other carriers are more worried about cutbacks, budget slashing, etc. Other carriers don’t care about us agents, but Hanover is investing in us, and they are growing!
then again, here in Wisconsin i am not sure that any of the carriers have any money left. They are all quivering from their combined ratios.
Do you need middle to upper management support for this venture? 40 years all venue, commercial underwriting/marketing accounts experience. The cultural and agency plant transition could be a little trickier than you think. If nothing else, this form of contact can tell you something of my entrepreneurial/profit focus. Located in Arizona — moving is not out of the question but prefer to stay here.
richardziert@yahoo.com
The boys at One Bacon are at it again. They just turned over Interboro Insurance Co. on the east coast by selling them their book of Auto One business in several state. Interboro is just out of rehab. They must like it there very much. With their current leadership or lack of it, BOHCA. Bend over, here it comes. White Mountain has a habit of picking companies to the bone. Look what they did to Atlantic Mutual, aka Ace Private Risk Mgt. They bought their commercial lines and walked out with their entire infrastructure. Of Course they did not pay for that.
It just gets worse every year.