Business Moves

Chubb PLI, Hub International

Chubb Corporation has agreed to sell its Personal Lines Insurance Brokerage Inc. to Chicago-based Hub International Limited. Chubb said the sale would have no material impact on its financial results. Revenue in 2004 for PLI, which is licensed in all 50 states and focuses on high net worth clients, was approximately $27 million. The acquisition will make Hub one of the largest personal lines brokers in the U.S, where Hub generated $25 million in personal lines revenue.

Tower Group, MIIX of New York

Continuing with its shell acquisition strategy, Tower Group Inc. agreed to acquire MIIX Insurance Company of New York, an insurance company with licenses in New York and New Jersey. Tower Group will pay $225,000 in cash as well as MIIX’s outstanding statutory surplus of approximately $7.8 million. This is Tower’s second shell acquisition this year, noted Michael Lee, president and chief executive officer of Tower Group Inc., who said that Tower plans to continue to expand MIIX’s licensing to other states. This purchase of licenses does not involve MIIX of New Jersey, a medical malpractice writer currently in rehabilitation.

St. Paul Travelers, CATRisk

The St. Paul Travelers Companies, Inc. has agreed to sell its CATRisk operation, a monoline earthquake and excess and surplus personal lines property unit which operates under the GeoVera, Pacific Select Property and USF&G Specialty brands. The CATRisk operation is to be acquired by a newly created holding company, established by affiliates of the private equity investment firms Friedman Fleischer & Lowe, LLC and Hellman & Friedman LLC. St. Paul Travelers said the sale, which should close in fourth quarter, does not affect the company’s ongoing personal lines business operating under the Travelers brand.

AMEX Assurance

AMEX Assurance Company, of the American Express Property Casualty companies, is now writing auto insurance policies
in New Jersey. AMEX is entering the

market exclusively through the Internet (www.americanexpress.com/autohome). AMEX Assurance currently writes auto insurance policies in 38 states and Washington D.C., and recently received an “A” rating from A.M. Best.

OneBeacon- National Farmers Union, QBE Insurance

OneBeacon Insurance Group in Boston is selling its National Farmers Union Property and Casualty Company subsidiary to QBE Insurance Group for approximately $142 million. The transaction includes NFU’s wholly owned United Security Insurance Company subsidiary. NFU provides personal, farm and business insurance mainly through a network of exclusive agents in nine Midwestern and Rocky Mountain states. In 2004, net written premiums were $178 million. Its United Security subsidiary provides inland marine and other specialty property coverage. OneBeacon said that NFU has delivered strong results but its focus is distinct from One Beacon’s. QBE Insurance Group Limited has operations in 47 countries writing in excess of $3 billion in premium.

Topics New York New Jersey