Nothing against Nationwide but should there be a national conversation concerning the size of insurance companies? Specifically how big is too big? It hasn’t been that long ago that we were told AIG was too big to fail. Competition is good for consumers and insurance companies in general. With the cost of complying and dealing with new, complicated regulations and capitol requirements it would seem that new insurance companies will be rare while consolidation continues. Are these types of acquisitions healthy for the country?
That’s an interesting purchase for Nationwide. How would that mesh with Allied, Nationwide’s commercial arm currently doing business with independant agents? Harleysville has a strong presence in the Mid-Atlantic region, and, even though they are a direct competitor of mine, I hate to see something like this. Unfortunately, I don’t think this bodes well for the people at Harleysville; at least, that’s my opinion, I could be wrong. :-) Hopefully, it’s just a rumor and will pass.
The employees of Harleyville should ask the ex-employees of Allied how that worked out for them.
On the plus side, Allied stock took a large leap when Nationwide acquired them, resulting in many Allied employee stockholders acquiring a large unexpected windfall.
Perhaps leaking this information is tied in Nationwide’s stock purchase strategy. Would IJ publish a rumor? I think that where there is smoke……..
Doug, shows you don’t know much about the Allied companies… they are larger in personal lines than commercial. Good luck to everyone in this (potential) merger!
There is lots of competition in the commercial insurance market. Rates are the lowest that they have been in years. Streamlined and efficient companies are healthy for the nation. Capitalism is at work. Good luck to the current Harleysville employees. The best ones will stay and create a stronger company as a result. Insurance companies are still being created and current carriers are aggressively expanding into more territories.
Doug, I was wondering the same about how Nationwide’s commercial position would mesh with Harleysville. Should be interesting if this pans out.
Harleysville enjoys brand liability in the Mid Atlantic. Nationwide is going to see a lot of that commercial book run away
along with the employees who will lose their jobs…
It’s about time. M&A activity has been pretty much dormant for about the past year, and there should be many more coming. The biggest thing holding back a firming market is the fact that there are way too many flavors of the month out on the street. Would like to see 4 or 5 more sizable acquisitions completed by mid-year 2012. C’mon QBE, Traveler’s and Liberty, when are you guys going to step up and start buying more? We need to clear off some shelf space!
Jon F, is right about employees losing jobs. BUT, Harleysville did the same thing to Lake States in Traverse City, eventually letting all those fine staff go as they moved operations to Harleysville PA. Service was never the same if you had them as a carrier and the personal touch, underwriters and knowledge of the MI market went downhill fast…
I would hate to see a well run regional get swallowed up by another national. Liberty Mutual and Nationwide are going to have too much control if they keep this up.
Are you kidding Pedro? There are about 2 dozen too many regionals in every market right now. These Regional idots accept their 115 combined ratios and smile, and are the only reason the market won’t return to some sanity. Traveler’s, Berkshire, QBE, Liberty and others need to flex their muscle, buy more regionals, and start bringing some sane pricing and risk selection back to the market. We’re long overdue.
Remember when Nationwide bought Wausau? How did that work for them? Wausau still had independents and direct. Then Liberty bought them. Still had independent then liberty did away with the direct sales force at the saem time the Wausau brand. I would not worry too much.
As a current Allied employee in Des Moines. Nationwide has expanded the workforce downtown to over 4,000 employees. We are actively hiring at this time. The only staff that I know that were adversely affected when NW bought Allied were the Life Insurance staff. Granted that was 13 years ago and I know that all the IT staff was either absorbed into the P&C divisions or left and found jobs in Des Moines. If you’re a good employee there will be a place for you. Relocation to Columbus is an option as well depending on how this works out.
Nationwide should do their due dilligence on this one. Harleysville has been the worst run company over the past few years. Letting this news out is proof of their management style, management by fear of losing your job, and you should be affraid if you work for Harleysville, just about every good underwriter they have had in my territory has been let go and not replaced.
Nothing against Nationwide but should there be a national conversation concerning the size of insurance companies? Specifically how big is too big? It hasn’t been that long ago that we were told AIG was too big to fail. Competition is good for consumers and insurance companies in general. With the cost of complying and dealing with new, complicated regulations and capitol requirements it would seem that new insurance companies will be rare while consolidation continues. Are these types of acquisitions healthy for the country?
That’s an interesting purchase for Nationwide. How would that mesh with Allied, Nationwide’s commercial arm currently doing business with independant agents? Harleysville has a strong presence in the Mid-Atlantic region, and, even though they are a direct competitor of mine, I hate to see something like this. Unfortunately, I don’t think this bodes well for the people at Harleysville; at least, that’s my opinion, I could be wrong. :-) Hopefully, it’s just a rumor and will pass.
The employees of Harleyville should ask the ex-employees of Allied how that worked out for them.
On the plus side, Allied stock took a large leap when Nationwide acquired them, resulting in many Allied employee stockholders acquiring a large unexpected windfall.
Perhaps leaking this information is tied in Nationwide’s stock purchase strategy. Would IJ publish a rumor? I think that where there is smoke……..
Doug, shows you don’t know much about the Allied companies… they are larger in personal lines than commercial. Good luck to everyone in this (potential) merger!
There is lots of competition in the commercial insurance market. Rates are the lowest that they have been in years. Streamlined and efficient companies are healthy for the nation. Capitalism is at work. Good luck to the current Harleysville employees. The best ones will stay and create a stronger company as a result. Insurance companies are still being created and current carriers are aggressively expanding into more territories.
Doug, I was wondering the same about how Nationwide’s commercial position would mesh with Harleysville. Should be interesting if this pans out.
Harleysville enjoys brand liability in the Mid Atlantic. Nationwide is going to see a lot of that commercial book run away
along with the employees who will lose their jobs…
It’s about time. M&A activity has been pretty much dormant for about the past year, and there should be many more coming. The biggest thing holding back a firming market is the fact that there are way too many flavors of the month out on the street. Would like to see 4 or 5 more sizable acquisitions completed by mid-year 2012. C’mon QBE, Traveler’s and Liberty, when are you guys going to step up and start buying more? We need to clear off some shelf space!
Jon F, is right about employees losing jobs. BUT, Harleysville did the same thing to Lake States in Traverse City, eventually letting all those fine staff go as they moved operations to Harleysville PA. Service was never the same if you had them as a carrier and the personal touch, underwriters and knowledge of the MI market went downhill fast…
I would hate to see a well run regional get swallowed up by another national. Liberty Mutual and Nationwide are going to have too much control if they keep this up.
Are you kidding Pedro? There are about 2 dozen too many regionals in every market right now. These Regional idots accept their 115 combined ratios and smile, and are the only reason the market won’t return to some sanity. Traveler’s, Berkshire, QBE, Liberty and others need to flex their muscle, buy more regionals, and start bringing some sane pricing and risk selection back to the market. We’re long overdue.
You better believe Nationwide is not on YOUR side
Remember when Nationwide bought Wausau? How did that work for them? Wausau still had independents and direct. Then Liberty bought them. Still had independent then liberty did away with the direct sales force at the saem time the Wausau brand. I would not worry too much.
As a current Allied employee in Des Moines. Nationwide has expanded the workforce downtown to over 4,000 employees. We are actively hiring at this time. The only staff that I know that were adversely affected when NW bought Allied were the Life Insurance staff. Granted that was 13 years ago and I know that all the IT staff was either absorbed into the P&C divisions or left and found jobs in Des Moines. If you’re a good employee there will be a place for you. Relocation to Columbus is an option as well depending on how this works out.
Nationwide should do their due dilligence on this one. Harleysville has been the worst run company over the past few years. Letting this news out is proof of their management style, management by fear of losing your job, and you should be affraid if you work for Harleysville, just about every good underwriter they have had in my territory has been let go and not replaced.