Business Moves

November 5, 2018

Hays Cos., Brown & Brown

Brown & Brown Inc. has agreed to acquire the assets of the Hays Companies insurance operations. The deal for the Minnesota-based insurance broker with $200 million in revenue marks the largest acquisition ever by Brown & Brown in its 75-year history.

Headquartered in Minneapolis, Hays Cos. is comprised of more than 700 risk management and employee benefits professionals in 32 locations across 21 states.

The transaction is expected to close in November 2018.

Jim Hays formed the Hays Companies 24 years ago. Since formation, Hays, along with Mike Egan, Bill Mershon, Steve Lerum and others have helped grow the firm.

The Hays Companies name, the executive group, and account teams will not change, according to Hays.

Hays Companies will operate as a region inside Brown & Brown Retail, one of four divisions. The Retail division brought in $940 million in revenue in 2017, which was 50 percent of the company’s total.

The operations will continue to be led by Hays, as chief executive officer of the Hays Companies, and Egan will continue to serve as president/chief operating officer.

Following completion of the transaction, Hays will join Brown & Brown as vice chairman and will serve on the board of directors, and Eagan will become a regional president of the Brown & Brown Retail Segment. Eagan will continue reporting to Hays and Jim will report up to Powell Brown, CEO of Brown & Brown.

Based in Daytona Beach, Fla., Brown & Brown is one of the largest insurance brokers in the world and one of the most active acquirers of agencies. This year alone, it has already done 19 deals with total annualized revenue topping $95 million.

HIIG, Creative Risk Underwriters

Houston International Insurance Group has agreed to purchase the remaining shares it did not own of Creative Risk Underwriters, a managing general underwriting agency based in Marietta, Ga., specializing in Medical Stop Loss.

Following completion of the transaction, CRU will be integrated into HIIG Accident & Health (HIIG A&H) with Michael Remeika, founding partner and president of CRU, serving as president of the combined companies and reporting to L. Byron Way, chief executive officer of HIIG A&H. The combined companies are expected to generate more than $125 million in gross written premium in 2019.

Based in Houston, HIIG is an insurance holding company formed in 2007 by Stephen L. Way. HIIG’s subsidiary insurance companies consist of Houston Specialty Insurance Co. and Imperium Insurance Co. The insurance companies are rated A/A- (Excellent) by A.M. Best Company.

Seeman Holtz Property & Casualty, Spencer Insurance Agency

Florida-based Seeman Holtz Property & Casualty Inc. has acquired Spencer Insurance Agency LLC, headquartered in Hobe Sound, Fla.

Spencer Insurance Agency has been serving the Eastern coast of Florida for over 25 years and offers coverage for homes, vehicles or personal assets.

Mitchell International, Genex

Mitchell International, a San Diego, Calif.-headquartered provider of technology, connectivity and information to the property and casualty insurance and collision repair industries, and Genex, a provider of clinical solutions to the workers’ compensation, auto and disability insurance markets, have entered into a definitive merger agreement in which Genex will become a new division of Mitchell.

In this transaction, Mitchell will expand its capabilities and resources in order to further assist clients across the auto, workers’ compensation and disability claims process. Genex will become a new division of Mitchell focused on clinical solutions, complementing Mitchell’s Auto Physical Damage, Casualty and Pharmacy Solutions divisions.

The merger is subject to customary closing conditions, including regulatory approvals.

Worldwide Facilities LLC, Draco Insurance Solutions Inc.

Worldwide Facilities LLC, a national wholesale insurance broker, managing general agent and program underwriter, has acquired the assets of Draco Insurance Solutions Inc., a Boston, Mass.-based program manager specializing in the public transportation sector.

The Draco team, led by Executive Vice President Scott Stevens, has underwriting expertise in the primary transportation space with a particular emphasis on the public auto sector.

IAT Insurance Group, IFIC Surety Group Inc.

IAT Insurance Group, a Raleigh, N.C.-headquartered provider of specialty property and casualty products, has finalized its acquisition of Newark, N.J.-headquartered IFIC Surety Group Inc.

IFIC consists of International Fidelity Insurance Company and its subsidiary Allegheny Casualty Insurance Company. Following the acquisition, IFIC becomes IAT’s seventh business unit, joining Specialty, Commercial Transportation, Programs, Assumed Reinsurance, Excess Casualty Mid-Market and Inland Marine.

IAT plans to maintain the IFIC brand following the acquisition, which reflects IAT’s entry into the surety market.

MLMIC Insurance Company, National Indemnity Company

MLMIC Insurance Company, formerly known as Medical Liability Mutual Insurance Company, has completed its conversion from a property and casualty mutual insurance company to a property and casualty stock insurance company and its acquisition by National Indemnity Company, a subsidiary of Berkshire Hathaway Inc.

The conversion and acquisition follow a September 6, 2018, approval by the superintendent of the New York State Department of Financial Services and a September 14, 2018, vote of policyholders of MLMIC with policies in effect on July 14, 2016.

The cash consideration resulting from the conversion will be paid out to eligible policyholders – policyholders with policies in effect from July 15, 2013 through July 14, 2016 – or their designees as promptly as practicable, according to a MLMIC press release.

As a subsidiary of Berkshire Hathaway, MLMIC will have enhanced capacity and financial strength to continue to serve New York State physicians, hospitals and dentists, the press release stated.

MLMIC remains the largest underwriter of medical professional liability insurance in New York and continues to be a New York-focused medical malpractice writer regulated by New York state. It will be operated by the same board of directors and staff.

Per an amended and restated charter, MLMIC has changed its full name from Medical Liability Mutual Insurance Company to MLMIC Insurance Company.

Alliant Insurance Services, Zande Group

Alliant Insurance Services has acquired the property/casualty insurance services firm, Zande Group, based in Des Plaines, Ill.

Zande Group delivers premium, tailored commercial and personal insurance products and services to clients both in Illinois and throughout the United States. The firm provides a broad array of products and solutions, including risk management, workers’ compensation, fiduciary liability, directors and officers liability (D&O), inland marine and cyber insurance.

Zande Group will maintain its current leadership and will continue to service its diverse portfolio of clients. Terms of the agreement were not disclosed.

Headquartered in Newport Beach, California, Alliant Insurance Services Inc. provides property/casualty, workers’ compensation, employee benefits, surety, and financial products and services to clients nationwide.

Kapnick Insurance Group, A.E. Mourad Agency

Kapnick Insurance Group has acquired Warren, Mich.-based A.E. Mourad Agency.

The Mourad team will join Kapnick in its Troy offices in early 2019.

A.E. Mourad is an independent agency that provides a variety of services including small business benefits and commercial and personal insurance.

Kapnick Insurance Group is a fourth generation, privately held professional service firm.

American Financial Group, ABA Insurance Services

American Financial Group Inc., based in Cincinnati, Ohio, is acquiring ABA Insurance Services Inc. from American Bankers Mutual Insurance Ltd.

Based in Shaker Heights, Ohio, ABAIS provides directors and officers and other complementary insurance solutions for banks, small businesses and nonprofit organizations, with a history that dates back 30 years. This acquisition will further strengthen Great American’s leadership position in targeted specialty casualty classes of business.

Under the terms of the agreement, AFG will pay ABMI approximately $28 million in cash at closing. This business is expected to contribute approximately $50 million in net written premiums on an annual basis. The transaction is expected to close in the fourth quarter, following customary regulatory approvals.

Following the transaction, ABAIS will continue to operate under the ABAIS brand and will become Great American Insurance Group’s 34th specialty P/C business unit.

American Financial Group is an insurance holding company with assets over $60 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Co.

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Insurance Journal West November 5, 2018
November 5, 2018
Insurance Journal West Magazine

Top Commercial Lines Agencies; Focus on Professional Liability / PLUS; Directory: Premium Finance; Market: Trucking