Business Moves

September 22, 2008

CRC Insurance, Southern Risk

CRC Insurance Services Inc., the wholesale insurance subsidiary of BB&T Corp., has completed a purchase of Southern Risk Operations LLC.

Sumter, S.C.-based Southern Risk is an excess and surplus (E&S) insurance broker that specializes in high-risk personal and commercial properties along the East Coast.

The 18-year-old company also operates branch offices in Miami, Marlton, N.J., Concord, N.H., and Timonium, Md., through its Horan Goldman subsidiary. Horan Goldman was founded in 1963.

Terms were not disclosed.

Birmingham-based CRC reported approximately $3 billion in premiums in 2007. Southern Risk will operate as a division of CRC managing general agency Southern Cross Underwriters.

Tom Curtin, chief executive officer of CRC, said the deal would “certainly boost our presence in the managing general agent segment of the industry.”

Southern Risk’s specialty lines include commercial transportation, property and liability, marine, and directors and officers.

CRC acquired Jackson, Miss.-based Southern Cross Underwriters in 2003. The the CRC division specializes in small- and middle-market accounts, including coverage for coastal homeowners and marine exposures. CRC has 26 offices and 865 employees. It was acquired by BB&T in 2002.

Hudson, CropUSA Agency

Hudson Insurance Group, the U.S. insurance division of Odyssey Re Holdings, has purchased the assets pertaining to the crop insurance business of CropUSA Insurance Agency, Inc.

Since 2006 CropUSA has acted as managing general underwriter for Hudson in the crop insurance sector. As a result of this transaction, Hudson has hired the staff and acquired the portfolio of CropUSA. The business will now operate under the brand Hudson Crop, and will continue to be led by Kent Petersen, previously the president of CropUSA.

Hudson has been approved to sell multi peril crop insurance for the 2009 crop year by the RMA, the managing agency for the Federal Crop Insurance Corp. Hudson Crop will also write related products, including crop hail and named peril crop insurance.

AmCOMP, Employers Holdings

Florida Commissioner Kevin McCarty approved the merger of AmCOMP with Employers Holdings Inc. and required AmCOMP to repay $8.4 million in excessive profits to its Florida policyholders.

AmCOMP ‘s insurance subsidiaries will repay $2.8 million in excessive profits it realized for accident years 2003, 2004 and 2005. It also will repay $5.6 million for excessive profits for accident years 2004, 2005 and 2006.

The merger is expected to be completed in late October.

AmCOMP specializes in workers’ compensation insurance for small- to mid-sized employers. Employers specializes in workers’ compensation insurance for small businesses working in low-to-medium hazard industries.

Comegys Insurance, Jakhotia Insurance

St. Petersburg, Florida-based Comegys Insurance recently acquired Tampa’s Jakhotia Insurance Group. The employees of both firms will combine all operations in Comegys’ offices in St. Petersburg. Jakhotia Insurance specializes in hotel/motels insurance coverage and retail segments throughout Florida.

Wells Fargo, N.C. Professional Benefits

Wells Fargo Insurance Services Inc., a bank-owned insurance brokerage and subsidiary of Wells Fargo & Co., acquired the assets of Greensboro, North Carolina’s Professional Benefits Associates LLC, which sells individual, fully insured and self insured group benefits.

Principals Keith Greene and Randy Southard and their team will transition into the Wells Fargo office in Burlington, N.C. Terms of the transaction were not disclosed.

Hallmark Financial Services, Heath Group

Hallmark Financial Services Inc. acquired 80 percent of Heath XS LLC and Hardscrabble Data Solutions LLC (collectively referred to as Heath Group) for $15 million in cash.

The Heath Group is a Basking Ridge, N.J.-based underwriting facility that annually produces approximately $50 million of lower hazard, middle market, excess commercial automobile and commercial umbrella risks on both an admitted and non-admitted basis through a network of wholesalers throughout the U.S.

Topics Florida

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Insurance Journal West September 22, 2008
September 22, 2008
Insurance Journal West Magazine

Agency Technology; High Risk Property/Catastrophe Risks; Digital Product Guide