Business Moves

Genstar, Confie Seguros, Westline

San Francisco-based Genstar Capital LLC, a middle market private equity firm, has partnered with insurance industry executives and Westline Corp. to establish Confie Seguros, a company formed to facilitate the consolidation of insurance brokerages in various states that primarily focus on the Hispanic consumer.

In announcing the venture, the new entity jointly announced that Confie Seguros has also completed its first investment in Cypress, Calif.-based Westline, an insurance brokerage serving California.

In the next three years, Genstar and Confie Seguros, led by insurance brokerage CEO John Addeo, look to build a national distribution company with revenues exceeding $300 million, focusing on key markets including, but not limited to, California, Arizona, Florida, Texas, Georgia, and Nevada.

Addeo has led two consolidations of middle-market property/casualty brokerages. Most recently, he was president and CEO of Alliant Resources Group, a company he founded with revenues exceeding $200 million. Prior to that, he was president and chief operating officer of USI Insurance Services.

Mordy Rothberg, Stephen Provenzano and Andre Urena have also been named as partners in the Confie Seguros executive team.

Rothberg, founder and president of Confie Seguros, will lead the business development and strategy for Confie Seguros.

Provenzano will serve as executive vice president and CFO.

Urena will serve as senior vice president of business development. Urena has more than 20 years of insurance industry experience in the Hispanic insurance market and is the CEO and founder of the Latin American Agents Association.

Westline distributes non-standard auto insurance products from 29 retail branches throughout California. Westline offers its products through three brokerage operations: South Coast Auto Insurance, Solo Insurance, and Freeway Insurance. Westline will serve as the operating platform to build out the California region for Confie Seguros.

John Klaeb, founder and CEO of Westline, along with chief operating officer Joe Waked, will continue to lead operations and acquisitions in California. Klaeb will serve as a member of Confie Seguros’ board of directors in addition to his role as CEO of Westline.

Barney & Barney, Saylor & Hill

Barney & Barney LLC, one of Southern California’s oldest and largest privately held brokerages, is merging with Saylor & Hill Co., an Oakland-based insurance brokerage. The transaction is expected to close on March 31, 2008.

Paul Hering, CEO and managing principal of the nearly 100-year-old Barney & Barney, said both companies bring strong balance sheets to the merger and that no downsizing or staff reductions are planned. “This is not a transaction motivated in any way by downsizing,” said Hering. “We’re looking at one plus one equals three. These are two very strong companies coming together.”

Hering characterized the merger as a perfect fit for both businesses. “We look forward to working together to grow our offices in both Southern and Northern California,” he said. “It makes us a bigger, stronger organization that has a statewide footprint and is better diversified, and with that we’ll be able to leverage that strength in the marketplace on behalf of our clients.”

Because the two companies overlap in many areas, such as technology and life sciences risks, Hering predicted that combining the two firms would lead to positive synergy. In other areas, he said Barney & Barney hopes to export its expertise to Saylor & Hill, and vice versa.

Hering noted that both Barney & Barney and Saylor & Hill are very protective of their corporate culture and are committed to remaining privately held.

Mike Mirsky, principal and managing director of the Oakland-based Saylor & Hill, which was formed in 1933, echoed those sentiments. “Being privately held allows us to keep our clients at the forefront of what we do,” he said.

While Barney & Barney and Saylor & Hill will each retain their individual names, office locations, staffing and management, the combined entity will be referred to as “B&B Company.” Hering will be the CEO and managing principal of the combined organization and will be based in San Diego. Mirsky will be a principal in the firm and managing director of the Bay Area office.

The combined firm will employ almost 300 associates and oversee more than 25,000 client accounts generating $62 million in annual revenue and representing more than $1 billion in annual premiums.

MOC Insurance, Farallon Associates

Van Maroevich, president and CEO of MOC Insurance Services/Maroevich, O’Shea & Coghlan, and Peter Brown and Harry Humphrey of Farallon Associates Insurance Brokers, both based in San Francisco, have announced the merger of their companies effective Jan. 1, 2008.

MOC Insurance Services and Farallon Associates Insurance Brokers are San Francisco-headquartered insurance brokerage firms providing risk management and employee benefits consulting services. The combined entity creates an organization with 50 professional employees in three locations servicing clients nationwide with total annual premiums exceeding $100 million.

“We will channel our risk and claims management expertise into the industries of real estate, entertainment, thoroughbred racing, agriculture, marine and aviation, while continuing to build one of the largest independent insurance brokerages in Northern California,” said Van Maroevich.

Ascension, Pan American Underwriters

Ascension Insurance Inc. has acquired the assets of Pan American Underwriters Inc., a California -based insurance agency.

Pan American is a wholly owned subsidiary of PAULA Financial, and pending a favorable vote by PFCO shareholders, the asset sale is expected to close in February.

Pan American offers property/casualty and benefits products and has been serving the risk management needs of agribusiness employers in the West since 1946.

Headquartered in Kansas City, Mo., Ascension is a full-service insurance and employee benefits agency providing brokerage and risk management services specifically to middle-market companies nationwide.

Jeffrey A. Snider, chairman and CEO of PFCO, said that all of Pan American employees will join Ascension. Together with its private equity partners, Parthenon Capital and Century Capital Management, Ascension expects to grow to $200 million in revenue over the next five years.

Topics California