Business Moves

ProBuilders

The ProBuilders risk retention group offering general liability insurance for builders and contractors will stop accepting new business and non-renew most of its 1,800 policies as of March 1.

According to Bill Tepe, chief financial officer for NationsBuilder Insurance Services (NBIS), the exclusive manager of ProBuilders, the group program has not been able to remain competitive and has been losing revenue due to the collapse of the real estate market and increasing competition from traditional insurance carriers.

As a risk retention group (RRG), ProBuilders is owned by its insureds. ProBuilders Specialty Insurance Co. will maintain primary responsibility for all claims. NationsBuilder Insurance Co. (NBIC) is assuming all present and future claims under a loss transfer agreement.

NBIS has contracted with an A-rated carrier to assume some classes of the business in 32 states. Tepe said NBIS is working to engage another carrier to write some or all of the rest of the business but a deal on this has not been finalized.

The ProBuilders RRG was formed in 2001 at a time when contractors, particularly in California and other western states, were having difficulty obtaining coverage. It later expanded into other regions, including New England in 2005. But in recent years, additional A-rated carriers have entered the contractors market and been competing on price, cutting into revenues and profitability for ProBuilders, according to Tepe.

According to the insurer actuarial firm Demotech, ProBuilders has seen a rapid decline in revenues the past few years. As of June 30, 2009, written premiums were about $6.8 million, down from $25.6 million at year-end 2008 and $62.7 million at year-end 2007. Tepe said the company is communicating with brokers who represent ProBuilders about the options they have for the business.

Tepe said that there is “nothing wrong” with NBIS and NBIS is not ending any of its other programs or services

Eagil Financial, Goebel

Goebel Insurance Agency of Philadelphia has been acquired by Eagil Financial Group, a New Jersey-based firm that provides financial planning services to high net worth clients. Financial details of the transaction were not released.

The Goebel Agency offers a full line of property/casualty and life insurance products. EAGiL specializes in life settlements and life insurance.

The Hanover, Campania Group

Worcester, Massachusetts-based insurer The Hanover Insurance Group Inc. will acquire The Campania Group, a medical and general liability insurer for the health care industry. Terms of the deal were not disclosed.

The Campania Group, based in Vienna, Virginia, provides professional and general liability insurance for a range of health care providers, including durable medical equipment suppliers, behavioral health specialists, elder care providers and podiatrists. Campania has companies admitted in 21 states and the District of Columbia.

The acquisition of Campania follows The Hanover’s December announcement that it has expanded in the West and entered into a renewal rights agreement with OneBeacon Insurance Group, acquiring access to $400 million in small- and middle-market commercial business at renewal, and expanding The Hanover’s segment, niche and industry program business.

York Specialized Loss, Daynard & Van Thunen

York Specialized Loss Adjusting (York SLA), a division of New Jersey-based York Insurance Services Group Inc., has acquired the assets of Daynard & Van Thunen Co. Inc., a provider of specialized loss adjusting services focused on complex property, ocean and inland marine risks. The terms of the deal were not disclosed.

Daynard & Van Thunen’s team of adjusters will add to York’s expertise in areas such as complex commercial property, transportation and motor truck cargo, ocean cargo, fine arts, jewelers’ block and furriers’ block, said Danny Miller, executive vice president, York Insurance Services Group and president, York SLA. .

Daynard & Van Thunen personnel will join York and will operate under the York SLA name. York will maintain the Daynard & Van Thunen branch office in Jersey City, N.J.

Spitale, SAN Group

Spitale Insurance Agency of Baltic, Connecticut has joined the Satellite Agency Network Group Inc. (SAN Group).

Agency Principal Erin Spitale said she joined the SAN Group as a way “to remain an independent agency while representing the buyer in multiple markets.”

SAN Group has over 275 members and access to more than 40 insurance companies.

NSM, Condon & Skelly

NSM Insurance Group has acquired Condon & Skelly Collectible Vehicle Insurance.

Founded in 1965, Condon & Skelly Collectible Vehicle Insurance began as a small niche insurance provider, and claims to be one of the original insurance brokers for the antique, classic car and street rod market.Today the industry of classic and antique vehicle insurance is a $1 billion dollar industry, and the market continues to grow and change despite tough economic times, says Geof McKernan, CEO of NSM Insurance Group.

McKernan said more vehicles are becoming part of the collector vehicle market, including street rods, kit cars and even some cars made in the ’70s and early ’80s. He also added that some farm industry vehicles can be considered collector vehicles too.

The specialty niche market offered by Condon & Skelly is a perfect fit for NSM Insurance, McKernan said. “We saw the great brand and want to improve on that,” McKernan said, adding that NSM will also be able to offer enhancements to the current policies and forms. “We also have some new business practices and technology coming down the road.”

NSM Insurance Group is a national program administrator with offices in five states across the country and specializes in the development and marketing of industry specific programs. Condon & Skelly will continue to operate in its current location in Maple Shade, N.J.

Terms of the acquisition were not disclosed.