Business Moves

Beacon Mutual

Beacon Mutual Insurance Co., which writes workers compensation for about 90 percent of the businesses in Rhode Island, has filed for a 16 percent reduction in rates. If approved by state officials the reductions would begin in September and produce about $9.2 million in premium savings for the insurer’s14,500 customers.

The pricing move comes after the withdrawal by the insurer of a previous filing for a 27 percent loss cost cut and ends at least temporarily a stalemate between the company and state regulators. The Department of Business Regulation, which must approve any filing, has been battling with Beacon Mutual over rate filings. DBR officials want Beacon Mutual to file along with the National Council on Compensation Insurers, which represents all other insurers in the state. But Beacon
had until now balked at using NCCI advisory filings. If approved, the change would be the first for the insurer since March 1999.

Swiss Re, General Electric

Swiss Re and General Electric announced the completion of the sale of GE’s reinsurance business, GE Insurance Solutions, including Employers Reinsurance Corp., to Swiss Re for between $7.4 billion. Swiss Re noted that the acquisition creates the world’s largest and most diversified global reinsurer. It plans to integrate GEIS operations into its own divisions over the next 18 months.

Eastern Insurance, Educators Mutual

Eastern Insurance Holdings, Inc. of Lancaster, Pa., completed its common stock offering, the conversion of Educators Mutual Life Insurance Company, also of Lancaster, to a stock insurance company and the simultaneous acquisition of Educators Mutual and Eastern Holding Company, Ltd. and its subsidiaries by EIHI. The company has begun trading under the symbol EIHI on the NASDAQ National Market.

As a result, Educators Mutual, now known as Eastern Life and Health Insurance Company, and EHC have become wholly owned subsidiaries of EIHI. EIHI will operate a domestic casualty insurance group specializing in workers’ compensation, a domestic accident and life insurance company, an offshore specialty reinsurance company and a third-party claims administration company. The new Web address is www.easterninsuranceholdings.com/.

Bollinger, Hopgood and Windsor

Bollinger Inc., a national privately held insurance broker, acquired Windsor Benefit Consultants Inc. and James E. Hopgood & Associates of Denville, N.J. Both firms’ employees will relocate to Bollinger’s corporate headquarters in Short Hills, N.J. In addition, Jim Hopgood, has been named senior vice president of Bollinger.

Bollinger has been very active on the acquisition front in 2006, having acquired MLW Services in New York City, agencies in as well as two Salem and Cumberland Counties in January. In April, Bollinger acquired Haas & Hass and The Surety Source both of which recently relocated to Bollinger’s Moorestown N.J. office. In 2005, Bollinger also closed on several acquisitions.