Business Moves

Shareholders of Lincoln National Corp. approved its $7.5 billion acquisition of rival Jefferson-Pilot Corp. The combined company, with 2004 revenue of $9.5 billion, will be headquartered in Philadelphia.

Eastern buys Howland’s Agency in Mass.

Eastern Insurance Group has acquired Howland’s Insurance Agency in Rockland, Mass. For Eastern Insurance, the acquisition increases its customer base south of Boston, where it already has seven locations. In all, Natick-based Eastern Insurance has 18 locations in eastern and central Massachusetts. Owner Doug Cole will remain with Eastern Insurance, as will full-time employees Geraldine Munroe and John Priest. The team will ultimately join the existing Eastern Insurance staff at Eastern’s location at 300 Union St., Rockland.

Founded in 1935, Eastern Insurance Group, LLC is one of the largest insurance agencies in New England, serving approximately 80,000 consumers and businesses. It is a subsidiary of Eastern Bank.

Hiscox opens U.S. office

Hiscox plc, a provider of specialty insurance based in the U.K., has opened a new U.S.-based underwriting operation offering cover for small and mid-size US professional service businesses outside the Fortune 1000.

Hiscox USA, based in Armonk, N.Y., has opened its doors with 15 underwriters and professionals. Hiscox USA will initially offer professional indemnity insurance via brokers. Within the next six months the company will extend the product offering to include terrorism, technology, media, telecoms and fine art insurance coverages.

The U.S. already accounts for 40 percent of Hiscox’s business today, primarily through its Lloyd’s business. Hiscox USA plans to build up its operation over the next three years. Ed Donnelly, president of Hiscox USA, will oversee the Armonk operations. Donnelly has over 21 years of underwriting experience from positions at AIG and Professional Indemnity Agency.

AMS launches premium finance network

AMS Services has acquired FinancePro, a developer of Web-based premium finance services based in Issaquah, Wash. FinancePro provides premium finance loan management and agent quoting and is currently used by MGAs and retail agencies that want to provide their own financing offerings to their customer base.

AMS also announced that it has launched the Prevail Network, an agent-oriented premium finance marketplace designed to provide insurance agents one-click access to multiple premium finance offerings for their financing needs. The network will enable agents to find the right financing terms across the vast number of finance companies and options available.

St. Paul denies Zurich rumors

Minnesota-based The St. Paul Travelers Companies Inc. denied recent media reports, including a Wall Street Journal article that claimed the company was in discussions with Zurich Financial Services Group regarding the possibility of a merger with Zurich. St. Paul Travelers stated that while its policy is “to avoid any comment on, or response to, market rumors or speculation, the factual and definitive manner in which these reports were made, both nationally and internationally, has prompted the company to provide this clarification.”

Analysts cautioned that a potential deal would face many hurdles, not the least of these being possible opposition by Zurich Financial’s management. Some analysts said they believe, however, that a combined company could improve cost efficiency and spread insurance risk. St. Paul Travelers itself was created in a 2004 merger of St. Paul Companies and the Hartford, Conn.-based Travelers Property Casualty Corp.

Hub buys eBenefits Group in Conn.

Hub International Limited has acquired eBenefits Group, LLC, an employee benefits insurance brokerage which specializes in streamlining the purchasing of insurance, administration process and client employee benefit communication. The company has offices in Simsbury and Branford, Conn. that will be folded into the operations of Hub International Northeast. eBenefits generated approximately $3 million in revenue in 2005. The group will report to Thomas Mangan, president of HUB Northeast’s Benefits Division. Terms of the transaction were not disclosed.

Sirius withdraws Fla. application

Sirius International Insurance Corp. has agreed to withdraw its application to do business in Florida as an eligible surplus lines insurer. The action occurred after representatives of Sirius and White Mountain Re, parent of Sirius, failed to convince attorneys for the Office of Insurance Regulation and the Florida Department of Financial Services that the application should be approved.

On March 7, the Florida department denied an application for licensure as a managing general agent filed by International Medical Group. IMG acts as an administrator of health insurance programs underwritten by Sirius. Neither IMG nor Sirius is licensed in any manner to transact insurance in Florida. Both Sirius and IMG had been the subject of consent orders issued by Florida’s insurance commissioner Aug. 30. Both entities agreed to stop transacting insurance in Florida without a license.

IMG had previously agreed in May, 2005 to cease and desist soliciting, marketing and issuing certificates of insurance for Global Medical Insurance.

By signing the Aug. 30 consent order, IMG agreed not to solicit, market or administer any insurance in Florida without complying with the provisions of the Florida Insurance Code as well as other provisions set out in the order.

Due to Sirius International’s withdrawal of its application, Sirius could be subject to punitive action for transacting insurance in Florida after it voluntarily agreed not to do so without the appropriate license or approval to do so.

Lincoln National to buy Jefferson Pilot

Shareholders of Lincoln National Corp. in Philadelphia have approved its $7.5 billion acquisition of rival Jefferson-Pilot Corp., with the transaction expected to close in early April. The combined company, with 2004 revenue of $9.5 billion, will be headquartered in Philadelphia.

Lincoln spokesman Tom Johnson said the company hasn’t yet determined how many jobs will be cut. John Still, senior vice president of corporate development at Jefferson-Pilot, said job cuts will be minimal in Greensboro, N.C, where that company is headquartered. Jefferson-Pilot employs 4,400 workers. Lincoln has 5,100 employees, of which 1,200 are in Philadelphia. After the deal closes, Lincoln will expand its board to 15 directors from 12. Seven directors will come from Jefferson-Pilot.

AIG acquires Travel Guard

American International Group Inc. is acquiring Travel Guard International, a national provider of travel insurance programs and emergency travel assistance, from the Noel Group of Stevens Point, Wisc. Financial
terms of the acquisition were not disclosed. Travel Guard International covers more

than six million travelers worldwide
each year. As part of the transaction, AIG will also acquire Mercury International, Travel Guard Americas and the Travel Guard Canada brands from the Noel Group.

Topics Florida USA AIG