Business Moves

September 3, 2007


Citi completed its previously announced acquisition of The BISYS Group Inc. for approximately $1.44 billion in an all-cash transaction.

In the transaction BISYS shareholders will receive merger consideration of $11.85 per share, and a special dividend of $0.15 per share in cash.

Immediately thereafter, Citi completed its sale of the Retirement and Insurance Services Divisions of BISYS to affiliates of J.C. Flowers & Co. LLC making the net cost of the transaction to Citi approximately $800 million.

NSM, Target Insurance Group

National insurance broker NSM Insurance Group of Conshohocken, Pa., acquired Brandon, Fla.-based Target Insurance Group, program administrator of the Express Hotel Motel Program.

“The Express Hotel Motel Program nicely complements our Coastal CHAMP (Coastal Condo, Hotel and Motel Program). We continue to aggressively seek new acquisition opportunities in the southeast and southwest states,” commented Geof McKernan, NSM chief executive officer. Terms of the transaction were not disclosed.

Shand Morahan, Cambridge Alliance

Shand Morahan & Co. Inc., a Markel Corp., has acquired Cambridge Alliance, a Burlington, Vt., managing general agency that specializes in errors and omissions insurance for registered investment advisors and financial planners.

Mike Rozenberg, Shand Morahan president and chief operating officer, said the move is intended to complement his firm’s established focus on professional liability and expand its offering in the financial services arena.

Cambridge Alliance will place business with the Markel’s Evanston Insurance Co. in all states except Illinois and New Hampshire, where business will be placed with the Essex Insurance Co. Both companies enjoy the Markel Corp.’s “A XIII” (Excellent) group rating by AM Best.

Hilb Rogal & Hobbs, Brown/Raynor

Hilb Rogal & Hobbs Co. of Richmond, Va., has acquired the property/casualty insurance agency Brown/Raynor Corp. of Colorado. Terms of the transaction, which closed on July 31, 2007, were not disclosed.

Founded in 1985 by George “Hank” Brown and Walt Raynor, Colorado-based Brown/Raynor reported $4.5 million in revenue in 2006. Brown/Raynor specializes in coverage for home builders.

Brown/Raynor’s staff of 29 professionals will continue to serve clients from their existing office in Greenwood Village, Colo., joining HRH’s West Region under the leadership of Vice President and West Region Director William F. Creedon.

SPARTA Insurance

SPARTA Insurance Holdings Inc. reports that it has closed its contractual arrangements for funding in the amount of $279.1 million of private equity capital from a consortium of investors led by Corsair Capital, and including Goldman Sachs, York Capital Management, Primus Capital Funds and KBW Capital Partners.

SPARTA, which is an acronym for Specialty Program and Risk Transfer Alternatives, intends to underwrite property and casualty insurance for the specialty and alternative risk program marketplace. SPARTA is located in Hartford, Conn.

George L. Estes III, is SPARTA’s chairman and CEO. In addition to Estes, SPARTA’s founding officers include Kevin G. Costello, president and chief operating officer, and Dawne E. Ware, chief financial officer.

Hub International, Jacobs & Jacobs

Hub International Limited has acquired the New York risk management firm, Jacobs & Jacobs Inc. (J&J). J&J’s operations became part of Hub International Northeast (HUB Northeast), expanding this operation’s current presence in the Long Island, New York area.

Currently based in Roslyn Heights, N.Y., J&J is a brokerage firm with 12 professionals, all of whom work at this location. The firm has a large client base within the real estate, manufacturing and restaurant industries. Over the course of the next several months, the team will be relocating to HUB Northeast’s current Long Island office, based in Woodbury.

The agency, which was founded in 1928, has been on Long Island for the past eight decades and was previously managed by Robert Jacobs, president, and Ron Lewis, vice president. They will now report directly to Douglas Schenendorf, president, Long Island Operations of HUB Northeast.

ACE International Construction

ACE Overseas General reported it has has formed a new international construction practice group to address the world’s growing regional commercial construction and infrastructure activity. Vice President David Walters, based in London, will lead ACE International Construction, reporting to Paul McNamee, senior vice president and Head of International Property.

The company said the new unit “aligns new and existing ACE capabilities in construction underwriting with the retail distribution platforms of regional and global broking operations.” It will draw on resources from the ACE Technical Risks unit, based in London, among other product areas. The practice group will have operations in the U.K., Continental Europe, Asia Pacific, the Middle East and Latin America.

John Keogh, CEO, ACE Overseas General, cited a “healthy amount of public sector and private equity investment” going on worldwide as “developed and developing nations upgrade and expand their infrastructure.”

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Insurance Journal West September 3, 2007
September 3, 2007
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