Business Moves

NSM Insurance, Insurex

NSM Insurance Group, a national wholesaler and program manager based in Conshocken, Pa., has acquired Insurex, a California-based workers’ compensation brokerage.

The acquisition “immediately expands our ability to provide new national workers’ compensation markets to our independent agent and broker customers” said Dan McCarthy, CEO, Insurex.

NSM believes the acquisition will leverage its market share in the property/casualty marketplace on the West coast, said Geof McKernan, CEO, NSM Insurance Group. “We continue to aggressively seek program administrator or specialty underwriting acquisitions in the southeast and southwest states,” Geof added.

NSM Insurance Group has offices in Texas, Florida and New York.

BB&T, UnionBanc Insurance

Raleigh, N.C.-based BB&T Insurance Services has reached an agreement with Union Bank of California North America to purchase its San Diego-based insurance subsidiary, UnionBanc Insurance Services Inc.

The acquisition would expand BB&T’s insurance operation in California, where wholesale insurance subsidiary CRC Insurance Services and large account commercial insurer McGriff, Seibels & Williams already operate.

UnionBanc Insurance Services is expected to operate as a wholly owned BB&T insurance subsidiary after the acquisition is completed. Martin Loth, who currently manages the McGriff, Seibels & Williams office in Irvine, Calif., would oversee the new West Coast subsidiary of BB&T Insurance Services.

When the acquisition is completed, BB&T plans to consolidate the California UnionBanc Insurance Services offices in San Rafael and Roseville into BB&T-Tanner Insurance in Pleasanton and Stockton. The company also plans to operate BB&T Insurance Services of Orange County in Fullerton and Irvine, “BB&T-John Burnham Insurance” in San Diego, and BB&T-Knight Insurance” in Glendale. Additionally, the company plans to combine the Portland, Ore., office of UnionBanc Insurance Services with BB&T’s existing McGriff office there.

“We’ve made a decision to exit the insurance brokerage business in order to concentrate our efforts on enhancing other core fee-based lines of business, including wealth and asset management, institutional services, and capital markets-related activities,” said Johannes (Johs) Worsoe, a senior executive vice president with Union Bank and head of its Global & Wealth Markets Group.

The transaction is expected to be completed by the end of the second quarter, pending regulatory approval. Terms were not disclosed.

“This partnership will only strengthen our overall investment on the West Coast,” said BB&T Insurance Services Chairman and CEO Wade Reece

Omega Insurance Holdings

Bermuda-based Omega Insurance Holdings Limited, which also focuses on the Lloyd’s and U.S. markets, announced that takeover discussions “with potential offerors” have been terminated.

Last February Omega’s board announced that it was in discussions with a number of parties who had expressed an interest in acquiring the company, but now the directors believe that the proposed offers “undervalue the long term value inherent in the company and have decided to terminate talks with all parties.”

Chairman Walter Fiederowicz commented: “We went into bid talks with an open mind, fully accepting that if a party would pay the right price for our franchise today then we would act accordingly in the best interests of shareholders. Our people and our business have come through quite extensive due diligence in the best light, but we do not believe that bidders’ valuations adequately reflect the value of Omega today and the value of what we are building in Bermuda and in the U.S.”

Lloyd’s Brazil Reinsurer

Lloyd’s has received approval from the Superintendence of Private Insurance (SUSEP) to become the first admitted reinsurer in Brazil. Lloyd’s applied for the license in February.

Going into the Brazilian reinsurance market follows the country’s legislative changes to reduce collateral requirements and open up Latin America’s largest insurance market. A number of foreign reinsurers have expressed an interest in entering Brazil as an admitted reinsurer.

Lloyd’s has established its first Brazilian representative office in Rio de Janeiro and looks to enhance its presence elsewhere in the country over time in line with business development opportunities.

Topics California Lloyd's