Hallmark, Texas General Agency

Hallmark, Texas General Agency

Hallmark Financial Services Inc. completed its previously disclosed acquisition of Texas General Agency Inc. and certain affiliates.

TGA is a managing general agency involved in the marketing and servicing of property and casualty insurance products, with an emphasis on commercial automobile and general liability risks.

The acquisition also included TGA’s wholly owned insurance subsidiary, Gulf States Insurance Company, which reinsures a portion of the business written by TGA; TGA Special Risk Inc., which brokers mobile home insurance; and Pan American Acceptance Corporation, which provides premium financing for property and casualty insurance products marketed by TGA and TGASRI.

Samuel M. Cangelosi, Donate A. Cangelosi and Donald E. Meyer, the sellers and principal officers of TGA, will continue managing the acquired enterprise.

Hallmark funded the approximately $14.6 million required to close the acquisition from available borrowing capacity under its revolving credit facility with Frost National Bank.

Hallmark also privately placed $25 million in subordinated convertible notes to two newly formed investment partnerships managed by Newcastle Capital Management, L.P., which is controlled by Mark E. Schwarz, Hallmark’s chairman and chief executive officer.

The proceeds of the private placement were used to establish a trust account to secure additional purchase price and non-compete payments due to the TGA sellers in January 2007 and 2008.

Lexington General, Burns & Wilcox

The staff and operations of Lexington General Agency Inc. of Hammond, La., moved into the offices of Burns & Wilcox of Baton Rouge, as of Jan. 20, 2006. Gary Batten, vice president and branch manager of Burns & Wilcox in Louisiana, said Burns & Wilcox acquired Lexington General Agency Sept. 1, 2005.

Lexington General has served retail agents in Louisiana for 15 years. Batten said the recovery from Hurricanes Katrina and Rita slowed down the transition into the Burns & Wilcox offices.

Lexington General underwriters Michelle Stewart and Kim Berthelot joined the Burns & Wilcox team. Former owner of Lexington General Agency, Ken Fortinberry, will retire from the insurance business.

The offices of Burns & Wilcox of Baton Rouge are located at Sherwood Oaks Office Park, 4354 S. Sherwood Forest Blvd., Suite D 260, Baton Rouge, La. 70816. Contact by phone: (225) 295-7588 / (866) 710-5484, ext. 2206, by fax: (225) 295-3150 or via e-mail: batonrouge@burns-wilcox.com.

Guardian, Destiny Health Plan

The Guardian Life Insurance Company of America expanded its partnership with Destiny Health to introduce the consumer-directed Destiny Health Plan to employers in Texas.

According to the company, Guardian’s Destiny Health Plan balances comprehensive health insurance coverage with incentives that encourage active participation in health care. An alternative to traditional managed-care plans, Guardian’s Destiny Health Plan puts consumers in charge of their health care dollars and provides the education and motivation to make smart decisions about their health and wellness, the company said.

The decision to expand Guardian’s Destiny Health plan into Texas reflects the continued success of the partnership, the company’s announcement said, as well as an increased interest in a consumer-directed health care concept that enables employers to: Offset escalating health insurance premiums; give employees greater control and personal choice in the health care they receive; provide value to employees, whether they are sick or well in a given year; provide employees with an integrated Health Reimbursement Arrangement or Health Savings Account; and offer a wellness program that motivates employees to lead healthier lifestyles.

Argonaut’s Great Central, Minnesota Restaurant Association

Great Central Insurance, a member of the Select Markets segment of San Antonio, Texas-based Argonaut Group Inc., has been selected by the Minnesota Restaurant Association (MRA) to offer property and casualty insurance on an exclusive basis to its more than 1,300 members.

As the MRA’s endorsed provider, Great Central will offer its specialized restaurant package, commercial auto and umbrella coverage to MRA members through a select network of agents statewide. Serving restaurateurs since 1934, Great Central provides insurance and risk management services to the restaurant and hotel/motel industry.

Berkshire Hathaway, Applied Under-writers

Berkshire Hathaway Inc. agreed to acquire Applied Underwriters and all of its subsidiaries, including its North American Casualty insurance companies. Terms of the transaction were not disclosed.

Applied Underwriters is a privately held company that provides integrated workers’ compensation solutions. It will continue to be managed by its founders, Chairman and Chief Executive Officer Sidney Ferenc, and President and Chief Operating Officer Steven Menzies, as well as the rest of its current management team. The company maintains its national operations center in Omaha, Neb. It will remain headquartered in San Francisco, and all of its business operations will continue as usual.

Applied Underwriters provides business insurance for a wide range of companies, with specific expertise in crafting workers’ comp and business services solutions for small and medium-sized enterprises. Its products include SolutionOne and EquityComp.

Nationwide Insurance, ID Theft

Nationwide Insurance and Washington, D.C.-based ID Theft Assist are expanding the availability of their identity theft protection and recovery service. Over the next several months, the insurance/restoration service will be available to anyone who wishes to purchase it, not just Nationwide homeowner policyholders.

With more than nine million victims in 2004, identity theft is America’s fastest-growing crime. Unlike other crimes, its victims are guilty until they prove their innocence. A 2005 Nationwide Insurance survey showed once people have their identity stolen, they can have a tough time getting it back.

One in four identity theft victims indicate they have not been able to restore their identities, despite averaging more than a year trying. Results of the survey conducted by MarketTools Inc., also show victims pay $587 in out-of-pocket expenses, such as lost wages.

ID Theft Assist provides a full-service, broad identity recovery system as part of Nationwide’s effort to combat the devastating effects of identity theft. These recovery services include 24-hour, seven-days-a-week access to an emergency call center; instantaneous access to credit reports; worldwide service that includes language translation and limited emergency cash advances; and legal support to help restore one’s identity.

Topics Texas Property Casualty