Business Moves

Aviva

The U.K.-based Aviva Group announced plans to expand in Russia. One year ago, the company launched Aviva Russia, and it is now poised to enter the direct sales market with its Moscow-based direct sales force. The company said it will be introducing a type of unit-linked product to Russia.

The company also has entered into three bancassurance partnerships with retail banks operating in Russia, namely Credit Europe Bank (formerly, Finansbank), Banque Accord (part of the Auchan Group), and Probisnesbank. As part of the partnership agreements, Aviva will provide insurance coverage for banks’ loan customers and credit cardholders, and stand alone protection products through banks’ branches. Aviva plans to introduce new initiatives such as savings products to specific bank customer groups, the company stated.

Swiss Re, Allianz

Swiss Re is structuring and placing $150 million of securities covering flood and earthquake catastrophic events in Great Britain, Canada and the United States on behalf of Allianz.

The reinsurer noted that the multiperil issuance bonds are part of a $1 billion program, which provides protection against high severity losses incurred from earthquakes in Canada or the United States (excluding California) and river floods in Great Britain.

The notes were offered by Blue Wings Ltd., a Cayman Islands special purpose vehicle and closed on April 3.

In case of a natural catastrophic event of the perils defined, the program would pay a claim based on pre-defined parameters and calculated by the risk modeling company Risk Management Solutions (RMS), said Swiss Re.

Fathia Grandjean, director of the Continental Europe Industry Practice at RMS, said risk will be based on new perils such as flood being securitized.

Allianz explained that Blue Wings was established “for the benefit” of Allianz Group through its corporate insurance arm, Allianz Global Corporate & Specialty.

The tool is expected to help the company manage and optimize its exposure to catastrophic events, noted Axel Theis, CEO at Allianz Global Corporate & Specialty.

Allianz further explained that “this cat bond holds two risks: first, earthquake in Canada and the United States excluding California, using a ‘modeled loss’ trigger and second, river flood in Great Britain using a second generation parametric index trigger, the innovative part of the project.”

Appalachian Underwriters

Appalachian Underwriters Inc. opened a San Diego satellite office to house its underwriting and executive staff.

George Johnston, a 21 year veteran of the California insurance marketplace and former Arrowhead executive, will head the initiative. The office’s focus will be on writing small accounts geared toward general liability in the residential construction industry, workers’ compensation and surplus specialty lines.

Oregon Insurance Division

Oregon’s Insurance Division has established a toll-free telephone number so that consumers can more easily contact the department with questions or complaints about agents or companies, order insurance publications, or request complaints forms. The new number is 888-877-4894.

Insurance Division Administrator Joel Ario said the number will help to alert regulators to larger problems in the insurance marketplace.

“Complaints help us identify the most important insurance problems for Oregonians, so we can target our enforcement and consumer education resources to the areas where they’re needed most,” he said.

The Insurance Division’s Consumer Advocacy Unit annually resolves about 4,000 complaints about all types of insurance, and handles about 20,000 telephone inquiries each year, the DOI said.

Meadowbrook, U.S. Specialty Underwriters

Meadowbrook Insurance Group Inc. agreed to acquire U.S. Specialty Underwriters Inc. for $23 million. The purchase price is comprised of $13 million in cash and $10 million in Meadowbrook stock, according to the buyer. Total additional shares issued for the $10 million portion of the purchase price were 907,935 shares.

Based in Cleveland, Ohio, USSU is a specialty program manager that produces fee based income by underwriting excess workers’ compensation coverage for a select group of insurance companies. USSU focuses on self-insureds within the health care industry and public schools in 29 states.

Meadowbrook specializes in alternative risk management solutions for agents, brokers, professional/trade associations, and small to medium-sized insureds.

Dongbu Insurance Co.

Dongbu Insurance Co. Ltd. has celebrated its first year of operations in Hawaii. Dongbu is the first “alien insurer” licensed in another country to use Hawaii as a port of entry to conduct insurance business in the United States, according to the Hawaii Department of Commerce and Consumer Affairs Insurance Division.

Gov. Linda Lingle said Dongbu has been a welcome addition to the homeowners and automobile insurance markets in Hawaii. In particular, Dongbu provided homeowners and wind coverage a year ago, when some homeowners were having difficulty finding coverage, she indicated.

Dongbu is the third largest non-life insurer in Korea, and a member of Dongbu Group conglomerate.

Vertafore, ImageRight

Vertafore Inc., a software and services solutions provider, acquired ImageRight from Advanced Solutions Inc. Details of the transaction were not disclosed.

ImageRight is an insurance-specific document management and workflow solutions. ImageRight joins Vertafore’s family of providers that currently includes AMS Services, BenefitPoint and SilverPlume. ImageRight will operate as an independent business unit.

Vertifore reports that the current ImageRight office in Conyers, Ga., will continue to exist with its estimated 200 employees. No layoffs are expected at either company, according to a statement.

Topics California USA Russia Hawaii Canada Allianz Uk