Business Moves

August 7, 2017

Markel, State National

Markel Corp. will acquire Texas-based State National Companies Inc. for $919 million, a deal that the Virginia-based insurer and reinsurer said will help diversify its underwriting and revenue streams.

Both companies’ board of directors voted unanimously to approve the deal, which calls for Markel to pay $21 per share to acquire all outstanding shares of State National common stock. Plans call for closing the acquisition in the 2017 fourth quarter, assuming State National shareholders and state regulators approve the deal.

State National is a specialty property/casualty insurance services provider focused on collateral protection insurance that insures personal automobiles and other vehicles held as collateral for loans made by credit unions. Its program services segment provides access to the U.S. property/casualty insurance market in exchange for ceding fees.

According to its website, State National is the largest and longest-standing pure-play U.S. insurance fronting business with approximately $1.4 billion in gross written premium (2016) and more than 60 programs. It employs about 400 people.

Markel, based in Virginia, is a holding company for insurance, reinsurance and global investment operations.

The McGowan Companies, NAPLIA

The McGowan Companies, a Fairview Park, Ohio-based company offering specialized insurance programs, has purchased the assets of Framingham, Mass.-based North American Professional Liability Insurance Agency LLC.

NAPLIA will be re-branded under the McGowan Program Administrators brand and will function as a division of McGowan & Company Inc. following the transaction.

Established in 1999, NAPLIA is a program administrator for professional liability insurance for accountants, bookkeepers and investment advisors.

All McGowan brokers will now have access to all of the product offerings formerly administered by NAPLIA.

Hub International Limited, Unilite Insurance Agency

Hub International Limited, a global insurance brokerage, has acquired the assets of Unilite Insurance Agency Inc. Terms of the acquisition were not disclosed.

Based in Lake Success, N.Y., Unilite was formed in 1991 and specializes in providing insurance products and services to the commercial real estate, construction and manufacturing industries. Robert Eisman and Eli Blisko, co-owners of Unilite, will join Hub’s Northeast region, reporting to Doug Schenendorf, president of its Long Island operations.

Alliant Insurance Services, Boynton & Boynton Insurance Professionals

Alliant Insurance Services Inc. has acquired Fair Haven, N.J.-based Boynton & Boynton Insurance Professionals in an effort to continue expanding its footprint throughout the northeast region of the U.S. Terms of the agreement were not disclosed.

Boynton & Boynton is a private insurance agency and is expected to add personal and commercial insurance solutions to the company’s growing Alliant Americas division.

Following the transaction, Boynton & Boynton will operate as part of Alliant Americas.

Boynton & Boynton President Jay Lynch, along with the entire Boynton & Boynton management team and staff, will join Alliant and continue to service clients from its offices in New Jersey and Pennsylvania.

Founded in 1929, Boynton & Boynton provides a range of commercial and personal insurance solutions to clients in New York, New Jersey and Pennsylvania.

Alliant Americas provides midsized businesses with targeted insurance, risk management and consulting services. As a middle-market platform with offices throughout the U.S., Alliant Americas delivers a range of products and services that are regionally focused.

Conifer Holdings, RHP General Agency Inc.

Conifer Holdings, headquartered in Michigan, has agreed to sell the book of HomeValue business produced through Sycamore Insurance Agency to Texas-based RHP General Agency Inc.

As part of this renewal rights transaction, the entire team at Sycamore Waco will become employees of RHP General Agency.

Conifer specializes in restaurants, bars and taverns throughout the United States inclusive of liquor liability.

RHP General Agency through its subsidiary insurance company, Southern Vanguard, is a specialty provider of low value dwellings in Texas.

JenCap Holdings, Special Risks Facilities

JenCap Holdings LLC has agreed to acquire privately held Special Risks Facilities Inc., an MGA/contract binding authority and wholesale insurance brokerage firm based in Sterling Heights, Michigan.

Special Risks was formed in 1971 and has been led by Jack Klebba and Randy Kaszeta. The company has an additional office in Peoria, Arizona.

JenCap Holdings (JCH) was formed in March 2016 by The Carlyle Group and JCH management to consolidate specialty insurance distribution businesses, including managing general agents, program managers and transactional wholesale brokers.

The acquisition of Special Risks (SRF) is the fifth such transaction by JCH, which is headquartered in New York.

U.S. Risk Insurance Group, IMS London American

Property/casualty wholesaler, U.S. Risk Insurance Group LLC, has acquired Texas-based IMS London American Brokerage and Underwriting Services.

IMS President Larry Mennes has been named president of U.S. Risk’s contract binding operations in Texas, and IMS’ Stephen Vallender has been appointed executive vice president at U.S. Risk Brokers Inc.

Headquartered in Houston, Texas, with additional offices in Dallas and San Antonio, IMS London American has been committed to providing superior underwriting and brokerage services since its founding in 2005.

U.S. Risk Insurance Group operates internationally and is headquartered in Dallas.

Crest Insurance Group, Troon

Crest Insurance Group LLC has acquired Tucson, Ariz.-based Troon Insurance Services.

Terms of the deal were not disclosed.

Troon was founded by Clebern Best and has been serving the greater Phoenix area for 20 years.

Crest has Arizona offices in Tucson, Phoenix, Scottsdale, Sierra Vista and Flagstaff, as well as in San Diego, Calif.

Ryan Specialty Group, N-Surance Outlets

Ryan Specialty Group LLC, has reached a definitive agreement to acquire N-Surance Outlets (NSO), a wholesale insurance brokerage and binding authority operation headquartered in Roswell, Ga. NSO will become part of R-T Specialty LLC (RT Specialty), the wholesale brokerage unit of Ryan Specialty Group (RSG), and will enhance RT Specialty’s Atlanta office while remaining at the current Roswell location.

N-Surance Outlets specializes in commercial P/C, transportation, and garage risks and was founded in 1985 by Gregory K. Murrey.

Jason Murrey, President of NSO, and his team will continue to service and expand their client base.

Terms of the transaction were not disclosed.

R-T Specialty, LLC, a subsidiary of Ryan Specialty Group LLC, provides wholesale brokerage and other services to agents and brokers.

Alera Group, Group Benefits

Alera Group – an independent insurance agency and employee benefits firm – has acquired Group Benefits LLC of Memphis, Tenn.

Group Benefits LLC is a benefits broker and consulting firm providing employee benefits products since its inception in 2009.

This acquisition is the latest announcement from Alera Group.

GBS Benefits, Volk & Associates

Longmont, Colo.-based Volk & Associates has been purchased by GBS Benefits, a member of Leavitt Group.

Volk & Associates has operated as an insurance and human resources consulting firm in northern Colorado.

GBS Benefits Inc. is an employee benefits firm and a member of Leavitt Group.

Leavitt Group is a privately-held insurance brokerage that provides property/casualty insurance, risk management and employee benefits solutions.

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From This Issue

Insurance Journal West August 7, 2017
August 7, 2017
Insurance Journal West Magazine

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