Western National, Arizona Auto, Legacy
Western National Insurance Group (WNIG) of Edina, Minn., signed an agreement for the purchase of 100 percent of the stock of Arizona Auto Insurance Co. and Legacy Insurance Services, both headquartered in Phoenix. The purchase has been approved by the board of directors of each company, and is subject only to the completion of due diligence and the approval of regulatory authorities. A final closing is expected before year-end.
Legacy was formed in 1997, and Arizona Automobile Insurance Co. (AAIC) in 2003, with both companies specializing in personal lines nonstandard auto insurance. The principals of Legacy/AAIC have been involved in the nonstandard auto insurance industry since 1988 and will continue to be involved after the closing. Arizona Auto is licensed in seven western states, and will have access to the additional licenses of WNIG.
Western National Insurance Group is a super-regional property/casualty insurance group writing more than $240 million in direct premium in 10 states. The group consists of five active companies (Western National Mutual Insurance Co., Western National Assurance Co., Pioneer Specialty Insurance Co., Titan Property & Casualty Insurance Co., and Wisconsin American Mutual Insurance Co.) serving personal and commercial customers in the midwestern, northwestern and southwestern United States All of the group’s products are sold exclusively through professional independent agents.
Philo Smith served as sole financial advisor to AAIC and Legacy on the transaction.
MainSource Financial, Encore Insurance
Greensburg, Ind.-based MainSource Financial Group sold the property and casualty and health insurance book of businesses related to its insurance subsidiary, MainSource Insurance (MSI), to Encore Insurance Group LLC, effective Oct. 1, 2010.
As a result of the transaction, MainSource Financial Group will book a pre-tax gain of approximately $900 thousand.
According to MainSource Financial President and CEO Archie M. Brown Jr., “This transaction allows MainSource Financial Group to focus on our strengths, which are to provide a robust set of banking and investment products to our customers. We are separating our interests in property and casualty insurance, as well as health insurance, from our core business model and allowing Encore Insurance Group to focus solely on this area. However, MainSource Bank will continue to offer annuities and credit life insurance to our customer base as the products align very well with our core business model.”
Encore Insurance Group LLC. will be managed by the current management team from MainSource Insurance. Jerry J. Vollmer will serve as president and CEO of Encore Insurance Group. He previously served as president of MSI for the past 10 years.
In addition, Encore Insurance Group will retain most of the current MSI agents. Customers of MainSource Insurance will not see a change in their current insurance coverage, policy number or carrier.
“Our agents will remain in the towns where they currently operate, providing convenient, local service to the communities we have served for so many years,” Vollmer said.
Old Republic, PMA
Chicago-based insurance holding company Old Republic International Corp. completed its acquisition of PMA Capital Corp.
In connection with the closing of the merger, Pennsylvania-based PMA changed its name to PMA Cos. Inc. It will maintain its corporate headquarters in Blue Bell, Pa.
Old Republic is an insurance holding company with subsidiaries that market, underwrite and provide risk management services for a variety of coverage, principally in the property and liability, mortgage guaranty and title insurance fields.
PMA is the holding company for several subsidiaries that specialize in property/casualty insurance, third-party administration and other fee-based services.
Shareholders of PMA Capital Corp. approved the acquisition in late September. PMA Capital President and CEO Vincent T. Donnelly and all other current PMA officers previously agreed to terminate their severance agreements upon the closing of the merger. All of the officers expect to continue in similar executive positions under the company’s new ownership.
The merger is a stock-swap transaction valued at around $365 million.
The CNA insurance companies formed an agreement with RSA (formerly Royal & Sun Alliance) that provides U.S.-based corporations with access to RSA’s global network. The agreement expands CNA’s reach to India, South Africa and Australia, as well as many Latin American countries. It supplements CNA’s current, 16-year alliance with Italy-based Assicurazioni Generali, according to the announcement.
Through international relationships with RSA and Generali, combined with a network of branch offices, CNA can offer international policies in 142 key countries around the globe. In addition, agents have access to the range of CNA’s Small business, professional, technology, and excess and surplus products, along with risk control and claim expertise.
Willis Group Holdings announced the establishment of a new business unit within Willis Global Markets International (GMI) for the insurance of companies involved in Life Sciences. It also announced the appointment of Tom Teixeira as the practice leader. He is based in London and will focus on major accounts outside the United States, reporting to Toby Wemyss, managing director of GMI.
Target industries include biotechnology, pharmaceuticals, chemicals and medical devices.
Teixeira started his career in the United Kingdom’s Ministry of Defence in project risk management.