Business Moves

HRH, Bank of America

Insurance broker Hilb Rogal & Hobbs Co. has agreed to purchase Banc of America Corporate Insurance Agency, L.L.C., a segment of Bank of America, N.A., and a middle market insurance intermediary in the northeastern United States.

BACIA has more than 300 full-time employees and manages $1.2 billion in commercial insurance and employee benefits retail premiums annually. The transaction excludes the consumer insurance business of Bank of America, N.A.

The transaction is expected to be completed during the fourth quarter of 2007, subject to applicable regulatory approval. Terms of the
transaction were not disclosed.

Headquartered in Cranford, New Jersey, BACIA has 15 locations in seven states. Formed through the acquisition and integration of six independent agencies, BACIA has grown to become the 27th largest U.S. insurance intermediary and the 6th largest bank-owned insurance intermediary, reporting 2006 revenues of approximately $66.3 million.

BACIA’s middle market focus includes employee benefits, which comprises more than half of its revenues, public sector organizations and private equity businesses.

“This acquisition will enhance HRH’s presence throughout the northeastern United States, especially with BACIA’s strong concentration in the metropolitan markets of New Jersey, Pennsylvania and New York City, and additional growing practices in New England,” HRH Chairman and Chief Executive Officer, Martin L. (Mell) Vaughan, III, said.

Hull & Co., Bollinger

Hull & Co., Inc. has acquired two Bollinger subsidiaries, Market Solution Managers, Inc., of New York, and Princeton Risk Managers, Inc., of Princeton, New Jersey.

Market Solution Managers and Princeton Risk Managers, with combined annualized net revenues of approximately $1.6 million, provide excess and surplus lines insurance primarily in the northeastern United States. While the New York City operation will remain at its current location, the Princeton office will be combined with Hull’s existing Florham Park, N.J. office. The two locations will be under the leadership of Jon Bannett, who heads Hull’s existing DVUA office in Florham Park, N. J.

Hull & Co., Inc. is a wholly-owned subsidiary of Brown & Brown, Inc.

AIG, National Union

The AIG Companies will begin marketing its directors and officers (D&O), errors and omissions (E&O), employment practices (EPL), fiduciary (PTL) and fidelity liability insurance and services under the new AIG Executive Liability brand.

These offerings, which traditionally have been marketed under the National Union Fire Insurance Company of Pittsburgh, Pa. name, will continue to be underwritten by the AIG Cos.

AIG Executive Liability will launch a new ad campaign and re-vamp applicable Web sites to support the marketing initiative.

Endurance Specialty, ARMTech

Endurance Specialty Holdings Ltd., a Bermuda-based provider of property and casualty insurance and reinsurance, reported that one of its U.S. based holding companies is buying out ARMtech Insurance Services, Inc. and its affiliates.

ARMtech is the fifth largest underwriter of U.S. federally sponsored crop insurance, with $410 million in total premiums in 2007, according to the companies. ARMtech entered the crop insurance services business in 1999 as a Texas-based managing general agency. ARMtech acquired American Agri-Business Insurance Co. in 2003. American Agri-Business Insurance Co. holds and agreement with the Federal Crop Insurance Corp. and is licensed to underwrite crop insurance in 33 states.

Unitrin, AmTrust

Chicago-based Unitrin, Inc. has agreed to sell its Unitrin Business Insurance segment to AmTrust Financial Services, Inc. in a cash transaction. Terms were not disclosed.

AmTrust, based in New York City, offers workers’ compensation, commercial automobile and general liability, extended service and warranty coverage. AmTrust North America, through Rochdale and Technology Insurance Companies, offers monoline workers’ compensation for small and mid-size businesses. AmTrust Underwriters Inc. specializes in risk funding arrangements to single entity and program business clients.

Unitrin is a $3 billion financial services company. Among its brands are Kemper, Unitrin Specialty and Unitrin Business Insurance.

W.R. Berkley, American Mining

Insurance holding company W. R. Berkley Corp., based in Greenwich, Conn., is acquiring CGH Insurance Group. The owner of American Mining Insurance Co. American Mining, based in Birmingham, Ala. has specialized in the mining industry since 1989. Terms were not disclosed.

Chandler F. Cox, Jr., American Mining’s current president and chief executive officer, and Dominick Giovannelli, its executive vice president and chief financial officer, will continue in those roles.

Chubb, Bao Minh

Federal Insurance Co. (Labuan), a wholly owned subsidiary of the U.S. Chubb Corp., has agreed to offer specialty liability insurance with

Bao Minh, the second-largest insurance company in Vietnam. The partnership will focus on writing directors and officers liability policies.

XL Global

XL Insurance, the global insurance operations of Bermuda’s XL Capital Ltd, has increased its underwriting capacity for construction
projects from $40 million to $100 million per project. XL Insurance also announced the addition of new underwriters in Spain, France, the Netherlands and the UK to its European construction team. These underwriters join the XL Insurance global team of underwriters, including those in the US and Canada.

Zurich-China

Zurich Financial Services Group has implemented what it calls “an innovative distribution strategy for the rapidly growing Chinese insurance market.” The Swiss insurer has renamed Best Harmonious Insurance Brokers Company, Ltd., as Zurich Insurance Brokers (Beijing) Limited. Zurich acquired a 24.51 percent stake in the broker, which is a nationally licensed Chinese insurance brokerage firm domiciled in Beijing, last year.

The acquisition, which together with the name change has received full regulatory approval, provides Zurich and its business partners with a multi-channel distribution platform capable of delivering general and life insurance products to customers across China, according to the company. The new platform will expand Zurich’s brand presence in one of the world’s fastest growing insurance markets.

The new platform expands upon Zurich’s two existing Chinese market operations — its general insurance branch operations in Beijing and its 20 percent share in New China Life, the country’s fourth largest life insurer based on 2006 premiums.

Northeast Bank, The Hartford Agency

Maine’s Northeast Bank Insurance Group, Inc announced its fifth insurance agency acquisition in less than a year. The Hartford Insurance Agency, family-owned and headquartered in Lewiston, is the latest in a string of deals for the insurance subsidiary of Northeast Bank, also headquartered in Lewiston, and is the largest, with more than $8 million in premiums, approximately 3,700 customers, and 9 employees.

Hartford sells property and casualty insurance as well as employee health insurance in the Lewiston / Auburn and surrounding markets.

Hartford also operates a niche insurance program insuring campgrounds, RV parks, sporting camps and paddle sport operations. This program was not included as part of the agency acquisition.

Topics USA New York New Jersey China AIG