Business Moves

Meadowbrook, U.S. Specialty Underwriters

Southfield, Mich-based Meadowbrook Insurance Group Inc. announced it terminated the management agreement associated with its acquisition of the business of U.S. Specialty Underwriters Inc. (USSU).

In April 2007, the company entered into an agreement to acquire the excess workers’ compensation business of USSU for a purchase price of $23.0 million. In conjunction with the acquisition, the company entered into a management agreement with USSU under which USSU was responsible for the daily administration and management of the business.

Effective Jan. 31, 2008, the company exercised its option to terminate the management agreement for a termination payment of $21.5 million.

USSU is based in Cleveland, Ohio, and produces fee income for the company by underwriting excess workers’ compensation coverage for a select group of insurance companies.

Hub International, Scheer’s Inc.

Hub International Limited announced it has acquired Scheer’s Inc. a large, privately-owned retail insurance brokerage specializing in surety bonds.

Scheer’s, headquartered in the Chicago suburb of Westmont, will become a new regional platform (hub) doing business as Hub International Scheer’s. The acquisition will add more than $12 million of revenue to Hub’s total surety business portfolio. Terms of the acquisition were not disclosed.

Founded in 1963, Scheer’s client base includes companies in the construction, manufacturing, homebuilding, environmental, energy, transportation and design sectors. The Scheer’s manufacturing and distribution division specializes in the placement and risk management needs of a variety of industries, including equipment leasing, food processing and metal and plastic manufacturing.

Farmers, Wisconsin

Farmers Group Inc. plans to recruit and train 400 new agents in the Milwaukee and Madison areas in an expansion that the insurer says could ultimately create 1,000 new jobs in Wisconsin. The company will invest about $20 million into the state economy with its expansion. Farmers already insures about 150,000 families in Wisconsin, but sees potential for many more, the company said.

Western National, Farmers Home Mutual

Western National Mutual Insurance Co. announced the completion of its merger with Farmers Home Mutual Insurance Company, effective Dec. 31, 2007. The merger follows final approval by each company’s Board of Directors and policyholders, and final regulatory approval from the Minnesota Department of Commerce.

Western National Mutual is a super-regional insurance group with over $510 million in assets and writing over $245 million in premium annually. The group now consists of four regional property casualty insurance companies with shared administrative offices in Edina, Minn., and an underwriting and claim office in Seattle, Wash. The company writes personal and commercial lines in Minnesota, Wisconsin, South Dakota, North Dakota and Iowa.

Schererville, Skelton & Carnegie

Schererville, Ind.-based Skelton & Carnegie Insurance Specialty Corp. recently merged with All Sure Co. and will operate as Skelton, Carnegie & Hitzeman.

The two principals, James M. Skelton and Larry R. Hitzeman, with combined experience in excess of 65 years, are shareholders of Skelton & Carnegie Insurance Specialty Corp.

Skelton, Carnegie & Hitzeman is a wholesale insurance broker providing capacity for most property and casualty risks, including, apartments, contractors, restaurants, bars and taverns, mercantile, special events and professional liability accounts.

Brown & Brown, Smith-Peaboy-Stiles

J. Scott Penny, regional executive vice president of Brown & Brown Inc., and James “Jim” Peabody, president of Smith-Peabody-Stiles Insurance Agency Inc., with offices in Fenton and Brighton, Mich., announced the asset acquisition of Smith-Peabody-Stiles by a subsidiary of Brown & Brown.

The Smith-Peabody-Stiles Insurance Agency, with annualized revenues of approximately $5 million, is one of the oldest insurance agencies in Michigan. Founded in Fenton, Mich., in 1919, the company specializes in property and casualty, surety bonding, life, health and employee benefits.

Jim Peabody, Jim Smith, Jeri Stiles and their staff will continue to serve their clients from their Michigan locations as freestanding Brown & Brown operations.