Business Moves

Travelers Aviation

Travelers has launched Travelers Aviation, a new unit targeting corporate and business aircraft, small to mid-size airports, aviation ground services and manufactured non-critical products used as aircraft components. In addition, Travelers Avitation will provide workers’ compensation coverage for corporate pilots and ground crew.

Travelers has been underwriting aviation business since 1994 through its Lloyd’s syndicate in London. Now, Travelers Aviation will be able to provide coverage for U.S.-based aviation exposures through a licensed U.S. company. Travelers Aviation is based in Atlanta, Ga.

As part of the business unit launch, Travelers Aviation is introducing Flight Plan Premier, an integrated aircraft coverage form providing liability and hull physical damage coverages for corporate flight departments operating jet aircraft on a worldwide basis. Policy limits of up to $300 million are available to qualified accounts. Travelers anticipates making Flight Plan Premier available throughout the U.S.

Bank of America

Bank of America said it has retained Banc of America Securities LLC to act as its financial advisor to explore strategic alternatives for its commercial insurance brokerage business, Banc of America Corporate Insurance Agency LLC.

Banc of America Corporate Insurance Agency, headquartered in Cranford, N.J., and a subsidiary of Bank of America Corp., provides brokerage and consulting services for both property and casualty insurance and employee benefits.

AmWINS, American Equity Underwriters

Wholesale broker AmWINS Group Inc. has agreed to acquire American Equity Underwriters Inc. (AEU), a Mobile, Alabama-based national provider of insurance programs for maritime employers with expertise in U.S. longshore and harbor workers’ compensation (USL&H) insurance. The acquisition is expected to close in the second quarter of 2007.

AIG, 21st Century

American International Group Inc. and 21st Century Insurance Group reported that AIG will acquire the 21st Century shares it does not currently own at a price of $22 per share in cash, for a total purchase price of approximately $813 million. AIG already owns, through its subsidiaries, approximately 60.8 percent of the outstanding shares of 21st Century. Upon completion of the transaction, 21st Century will become a wholly owned subsidiary of AIG.

Summit Financial, Kelly Insurance

West Virginia-based Summit Financial Group Inc. agreed to acquire Kelly Insurance Agency Inc. and Kelly Property and Casualty Inc. headquartered in Leesburg, Va., for $6.2 million in stock. The acquisition represents a more than a five-fold increase in insurance revenue for Summit.

Summit intends to merge the Kelly Agencies into its existing insurance agency, Summit Insurance Services LLC, but the Kelly Agencies will continue to operate under the “Kelly” name. All present principals and agents of Kelly will continue with the Summit Insurance Services team. The Kelly Agencies have combined revenues of $4 million.

Topics USA AIG