Business Moves

The Hanover, Professionals Direct

The Hanover Insurance Group, Inc. reports it has completed the previously announced acquisition of Professionals Direct, Inc. for $23.2 million. Professionals Direct’s companies specialize in lawyers professional liability insurance.

“Lawyers professional liability insurance is a natural complement to the types of business our agents are writing in the small- to mid-sized market. It will enable them to write more business with existing customers and to develop new customer relationships, providing the liability coverage by itself or in combination with other coverages,” said Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group.

Professionals Direct, Inc., based in Grand Rapids, Michigan, is the holding company for a Professionals Direct Insurance Services and Professionals Direct Insurance Co. Professionals Direct provides lawyers professional liability insurance in more in 36 states. Founded in 1987 as Michigan Lawyers Mutual Insurance Co., Professionals Direct reorganized in 2001 as a stock organization and expanded nationally.

Ariel, Valiant

Bermuda-based Ariel Holdings Ltd. reports it will acquire Valiant Insurance Co. from Zurich North America Commercial Group. Ariel Holdings Ltd. said it has established a U.S. based insurance holding company, Valiant Insurance Group, Inc., in anticipation of this transaction.

According to Gary Dubois, president and chief executive officer of Valiant Insurance Group, Inc., the company will “operate under the Valiant Insurance name, and this company will serve as the operating platform for a new specialty property and casualty insurance initiative.”

Valiant Insurance Co. is licensed on an admitted basis in 47 states plus the District of Columbia.

Dubois said this acquisition will help to further diversify and expand Ariel Holdings Ltd.’s insurance and reinsurance market profile globally. Ariel Holdings Ltd. and Valiant Insurance Group, Inc. expect to close the acquisition in early October, subject to obtaining regulatory approvals. The terms of the agreement are confidential, except Zurich will retain responsibility for Valiant Insurance Co.’s historical business.

In September of this year Ariel Holdings Ltd. announced the acquisition of Lloyds’ market underwriting specialist Atrium Underwriting PLC. Ariel Holdings Ltd. has acquired in excess of 96 percent of the shares and is proceeding under UK law to purchase the balance.

Ariel Holdings Ltd., through its wholly-owned subsidiary Ariel Re, is a Bermuda-based provider of property, marine, energy and aviation reinsurance, and selected specialty lines of insurance. Ariel was formed in December 2005 with over $1.0 billion of capital from institutional investors.

Patrons Mutual, State Auto

A.M. Best Co. has placed the financial strength rating (FSR) of B++ (Good) and the issuer credit ratings (ICR) of “bbb” of Patrons Mutual Group of Connecticut under review with positive implications.

These rating actions are the result of the announcement that Patrons Mutual Group has entered into an agreement to be affiliated with State Automobile Mutual Insurance Company in Columbus, Ohio.

Patrons Mutual Group consists of Patrons Mutual Insurance Co. of Connecticut, Litchfield Mutual Fire Insurance Co. and Patrons Fire Insurance Co. of Rhode Island.

A.M. Best said it expects that State Auto’s technology and financial strength will expand Patrons Mutual Group’s business potential while enhancing the geographic spread and providing a new source of profitable growth for State Auto.

Patrons Mutual Group markets its personal, commercial, farm and specialty insurance products in Connecticut, Massachusetts, Rhode Island and Vermont.

State Auto is a member of State Auto Insurance Companies, which is primarily engaged in writing personal and business insurance products exclusively through approximately 3,200 independent insurance agencies in 29 states.

The FSRs and ICRs of State Auto, State Auto Insurance Companies and its remaining member companies are unchanged following the announcement of the planned affiliation.

Hub, Totten Insurance Group

Chicago-based Hub International Limited announced that one of its subsidiaries has agreed to acquire all of the stock of Totten Insurance Group Inc., a Canadian specialty insurance wholesaler that develops niche products and provides solutions for unusual lines of business.

“Totten, together with HUB Ontario’s existing wholesale companies, will operate as a separate hub in concert with Hub International’s other Canadian wholesale operations across Canada,” said the announcement. Totten was formed in 2002, and operates both in the Canadian and international markets.

The Group’s President and CEO H. Ross Totten said the alignment with HUB would give his firm the chance to “explore more opportunities in the wholesale intermediary field.” He also indicated that the additional resources Hub could provide, “coupled with our independence as a separate hub allow us to offer our brokers and markets a broader range of niche products going forward as a combined operation.”

Hub said its current Canadian wholesale operations – Hub International Ontario Limited (HUB Ontario), The Wholesale Insurance Group and Cross Border Underwriting Services Inc. would “merge with the newly acquired entity, and moving forward, the combined business will operate as Totten Insurance Group.”

H. Ross Totten will become the president and CEO of the combined group. “The amalgamation will result in a $58 million in premium wholesale operation with offices located in Brampton, Moncton, Mississauga, Winnipeg and London, Ontario,” the bulletin continued. “The staff of approximately 75, including all operations, will remain in place.”

Dennis Pauls, president and CEO of HUB Ontario, noted the “significantly different focus” of the wholesale operation from “a retail property and casualty brokerage.” He explained that “conducting the wholesale operations in a separate hub will allow HUB Ontario to focus on building its retail operations and dedicating more time and energy to its core business.”

The closing of the transaction, which is scheduled for the third quarter of 2007, is subject to approvals and other “customary closing conditions.”

Topics Connecticut Canada