Business Moves

Oregon Insurance Division, American Standard

The Director of the Oregon Department of Consumer and Business Services Insurance Division reported that American Standard Insurance Company of Wisconsin entered into a stipulation agreement, based on an enforcement action by the Department.

According to a statement by the Department, American Standard, with a principal business address located in Madison, Wis., has been licensed in Oregon as a foreign insurer since Aug. 1997. In July 2005, “the company denied a third-party motor vehicle liability claim based solely on its insured’s and the claimant’s statements when the insured denied there being an accident, the claimant did not witness the alleged accident, and both the insured and the claimant informed the company of the names of four possible witnesses but the company refused to contact the witnesses” until after the claimant filed a complaint with the Insurance Division.

The Department took enforcement action against the company because state statutes prohibit an insurer or other person from refusing to pay claims without conducting a reasonable investigation based on all information. As part of the agreement, American Standard has been assessed a civil penalty of $3,000, and the company has waived its rights to an administrative hearing and judicial review.

Hilb Rogal & Hobbs, Loan Protector

Insurance broker Hilb Rogal and Hobbs Co., Richmond, Va., is acquiring Loan Protector General Agency Inc. and Loan Protector Tracking Services Inc., a provider of insurance tracking programs and lender-placed insurance products to the mortgage industry. HRH expects to close on the acquisition on Jan. 1, 2007.

AIG Global, Dubai Ports World

Dubai Ports World, the company whose planned takeover of major U.S. port operations ignited a political firestorm earlier this year, agreed to sell those operations to AIG Global Investment Group.

The operations at six major U.S. seaports in New York/New Jersey; Philadelphia; Baltimore, Md.; Miami; Tampa, Fla.; and New Orleans were valued at approximately $700 million, but DP World did not disclose the sales price.

The deal also involves stevedoring operations in 16 locations along the eastern seaboard and Gulf Coast, as well as a passenger terminal in New York City.

DP World was set to acquire the U.S. port operations earlier in the year, but the deal was criticized by members of both political parties. As a result of the public pressure, DP World agreed to sell off the U.S. assets.

c:Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Strongwood, Northeast Agencies Network

California-based Strongwood Insurance Holdings Corp. acquired Northeast Agencies Inc., a Buffalo, N.Y.-based aggregator of commercial and personal lines for insurance agents.

Northeast Agencies will operate as a subsidiary of Strongwood Insurance Holdings.

Strongwood Insurance Holdings Corp. receives investment support from J.P. Morgan Partners LLC, and was counseled by Mystic Capital.

OneBeacon, National Marine Underwriters

OneBeacon Insurance Group acquired ownership of National Marine Underwriters. National Marine Underwriters will become a part of International Marine Underwriters (IMU), a division of OneBeacon Insurance Group that offers ocean marine solutions for hull, marine liabilities, and private-pleasure yachts, as well as ocean cargo.

Based in Annapolis, Md., National Marine Underwriters is licensed to operate in 48 states and the District of Columbia. Financial terms of the transaction were not disclosed.

Trident II, AXIS

Bermuda’s AXIS Capital Holdings Ltd. announced that Trident II and related entities have agreed to sell 3 million of AXIS Capital’s common shares in a block trade.

AXIS said, “Citigroup Corporate and Investment Banking will be the underwriter in the offering of the shares to public investors. The common shares are being offered under AXIS Capital’s Form S-3 shelf registration statement (No. 333-118023). Trident will receive all net proceeds from the sale.”

QBE, Praetorian Group

Australia’s QBE Insurance Group agreed to purchase the Praetorian Financial Group (PFG), the U.S. operation of Hannover Re for $800 million, subject to regulatory approvals.

QBE said the acquisition is complementary to its existing business in the United States, and the company anticipates the acquisition will be completed in the second quarter of 2007. PFG is expected to add about $1.4 billion to gross premium income on an annualized basis. QBE also indicated it would fund the acquisition from internal excess capital, dividend reinvestment and short-term debt.

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