Business Moves

January 28, 2007

Goldman Sachs, USI Holdings

Big insurance broker USI Holdings Corp. agreed to be acquired by GS Capital Partners, a private equity affiliate of Goldman, Sachs and Co., in a transaction valued at approximately $1.4 billion, including repayment of USI’s existing debt obligations.

Under the terms of the GS Capital merger agreement, USI stockholders will receive $17 in cash for each share of USI common stock they hold, representing a premium of 20.5 percent to the average closing share price for the 30 calendar days prior to Oct. 24, 2006, the day USI announced that it had formed the special committee. The transaction is expected to close in the second quarter of 2007, subject to the receipt of stockholder and regulatory approvals and satisfaction of other conditions.

Swett & Crawford, Oxbridge

Wholesale insurance broker Swett & Crawford acquired the assets of Oxbridge Insurance Associates Inc., located in Morristown, N.J. The venture marks Swett and Crawford’s first acquisition since the company was sold by Aon Corp. to an investment group in November 2005. Oxbridge is a wholesale broker writing programs for the major professional sports leagues and an exclusive nationwide crane facility. Oxbridge also offers brokerage services for the transportation industry, with a focus on the motor coach, school bus and limousine industries.

Donegal Mutual, Sheboygan Falls Mutual

Sheboygan Falls Mutual Insurance Co. and Donegal Mutual Insurance Co. a have signed an agreement whereby Donegal Mutual will make an investment of $3,500,000 in Sheboygan Falls Mutual and Donegal Mutual will enter into a services agreement with Sheboygan Falls Mutual. The transaction requires the approval of the Wisconsin commissioner of insurance.

The affiliation will enable Sheboygan Falls Mutual to compete more in Wisconsin. For Donegal Mutual, it provides an opportunity to expand into Wisconsin.

Alfa, Virginia Mutual

Alfa Corp. has completed completion its plan of conversion and acquisition of Virginia Mutual Insurance Co. Virginia Mutual converted from a mutual company to a stock company and simultaneously has been recapitalized as Alfa Alliance Insurance Corp., a wholly owned subsidiary of Alfa Corp.

The conversion was approved in 2006 by the Virginia State Corporation Commission as well as Virginia Mutual policyholders. Virginia Mutual and Alfa companies have participated in a strategic affiliation agreement since August 10, 2001, which has now been terminated.

In 2006 Virginia Mutual had written premium of approximately $41 million and nearly 50,000 policies in force in North Carolina and Virginia. Alfa Alliance will participate in the inter-company pooling agreement which includes other Alfa affiliated companies.

Headquartered in Glen Allen, Va., Alfa Alliance will market its products under the Alfa Insurance name via a network of more than 200 independent agents throughout Virginia and North Carolina. Alfa Alliance will immediately expand to Tennessee and add approximately 45 agencies by year-end 2007.

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