Business Moves

Ryan Specialty Group, Oakbridge
R-T Specialty LLC, the wholesale brokerage unit of Ryan Specialty Group LLC, acquired Bloomfield, Conn.-based Oakbridge Insurance Services LLC, an insurance intermediary focused exclusively on executive and professional liability exposures and insurance solutions. Terms were not disclosed.

Oakbridge was organized in 2005 as the successor to Carpenter Moore Insurance Services’ Eastern U.S. operations. Oakbridge also maintains offices in California, Minnesota, New Jersey and Ohio.

Donegal Group, Michigan Insurance
Donegal Group Inc. announced that it had completed the acquisition of Michigan Insurance Co., which was formerly a majority-owned subsidiary of West Bend Mutual Insurance Co.

The final purchase price will be calculated based on the GAAP book value of Michigan Insurance Co. as of Nov. 30, 2010. Donegal Group Inc. estimates that the final purchase price will be approximately $40 million.

Michigan Insurance Co. writes various lines of property/casualty insurance and had direct written premiums of $106.6 million and net written premiums of $26.7 million for the year ended Dec. 31, 2009.

Effective on Dec. 1, 2010, Michigan Insurance Co. entered into a 50 percent quota share agreement with third-party reinsurers and a 25 percent quota share reinsurance agreement with Donegal Mutual Insurance Co. to replace the 75 percent quota share reinsurance agreement Michigan Insurance Co. maintained with West Bend through Nov. 30, 2010. Donegal Mutual Insurance Co. will include its assumed business from Michigan Insurance Co. in its pooling agreement with Atlantic States Insurance Co. Over time, Donegal Group Inc. will have the ability to reduce the level of third-party quota share reinsurance and thereby provide additional premium growth.

Based on Michigan Insurance Co.’s historical underwriting experience and profitability, Donegal Group Inc. believes the acquisition and reinsurance arrangements will be accretive to earnings in 2011.

The acquisition will help the company expand its Midwest operations into Michigan.

American Strategic
American Strategic Insurance Corp. (ASI) has entered Virginia, Delaware and Georgia residential property markets.

The company offers policies for homeowners, renters, condominium owners, seasonal residents and investment property owners through independent agencies. The company also offers flood coverage.

ASI, a Florida-based company, writes in 10 states (Arizona, Colorado, Delaware, Florida, Georgia, Louisiana, New Jersey, South Carolina Texas and Virginia) and says it has plans to enter more than 10 additional states in the next 18 months.

The company currently has $525 million in written premiums and nearly $300 million in policyholders’ surplus.

Topics Michigan