The Hartford said it has received all regulatory approvals needed to complete its acquisition of specialty insurer Navigators Group on May 23.
“This acquisition is a significant milestone for our company and accelerates the achievement of key strategic objectives. We are excited about the growth opportunities this transaction provides as we expand our product offerings and global reach,” said The Hartford’s Chairman and CEO Christopher Swift.
The Hartford announced the transaction last August. At that time, The Hartford said it had sufficient existing resources to fund the total purchase price of approximately $2.1 billion, but was going to consider alternative sources of capital prior to the closing.
Combined the two will have more than $8.2 billion in commercial lines net written premiums — which would rank it seventh among U.S. commercial lines insurers.
Stamford, Conn.-based Navigators is a global insurance holding company that specializes in maritime, construction, energy, environmental, professional services and life sciences — 22 vertical markets in all — and it has relationships with global retail and wholesale brokers. It has offices in the United States, the United Kingdom, Continental Europe and Asia.
In addition to an established presence at Lloyd’s, the company also has growing underwriting operations in Europe, Asia and Latin America. The company currently operates three business segments: U.S. Insurance (58 percent of 2017 gross written premiums), International Insurance (29 percent) and Global Reinsurance (13 percent).
The Hartford has said the Navigators business is “highly complementary” to its current commercial lines portfolio with added specialty and surplus lines capabilities and reduced workers’ compensation concentration. It is also complementary geographically and its Lloyd’s platform will help support future specialty lines growth.
Navigators has specialty lines coverages and markets where The Hartford does not currently underwrite or have a significant market presence, including marine, energy, environmental, construction wrap ups, international and the deal increases the scale of The Hartford’s existing positions in construction, professional liability, financial products and life sciences.
Navigators has approximately 820 employees globally who will join The Hartford upon closing. Approximately 600 of its employees are based in the U.S. and 150 are located in the U.K. Its U.S. offices include sites in New York, Chicago, Houston, San Francisco, Los Angeles, Atlanta and Seattle.
In February, in anticipation of the deal, The Hartford announced a new operating model and organizational structure that will be effective upon the closing. Navigators operations, along with The Hartford’s current Specialty Commercial and Middle Market businesses, will be aligned around two new market-facing businesses – Global Specialty and Middle & Large Commercial.
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