Business Moves

The Republic Group

The Republic Group, headquartered in Dallas, Texas, announced its entry into the personal and commercial lines insurance markets in Mississippi.

The companies will distribute homeowners, dwelling fire, commercial lines, and farm and ranch products through independent agents and an affiliated general agency, Southern States General Agency Inc.

Republic is a super-regional carrier that was founded in 1903. The financial strength of each of the Republic insurance companies is recognized by A.M. Best Company as “A-” (Excellent).

In its independent agents segments, Republic distributes products to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, Mississippi and New Mexico. In its program management and insurance services segments, Republic capitalizes on a combination of charters and licenses to develop and manage target-niche insurance products that are distributed through managing general agents in many additional states.

BancorpSouth, Insurance Network

BancorpSouth Insurance Services Inc., a subsidiary of Mississippi-based BancorpSouth Bank, reached an agreement to acquire Insurance Network of Jonesboro, Ark., effective Sept. 1, 2007.

Insurance Network will become part of BancorpSouth’s Little Rock, Ark., insurance division, Ramsey, Krug, Farrell and Lensing (RKF&L), and continue to serve clients in North Central and Northeast Arkansas with its present staff.

Insurance Network, originally incorporated as the Jonesboro Insurance Agency in 1971, serves clients in aviation, banking, construction, manufacturing and the professional and retail markets, including the provision of affluent market products for families.

RKF&L was founded in 1932 and became part of BancorpSouth Insurance Services Inc. in 2003.

BancorpSouth Bank operates 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.

Endurance Specialty, ARMTech

Endurance Specialty Holdings Ltd., a Bermuda-based provider of property and casualty insurance and reinsurance, reports that one of its U.S.-based holding companies is buying out ARMtech Insurance Services Inc. and its affiliates.

ARMtech is the fifth largest underwriter of U.S. federally sponsored crop insurance, with $410 million in total premiums in 2007, according to the companies.

Samuel R. Scheef, the founder, majority owner and president of ARMtech, along with ARMtech’s other employee founders and current managers, will continue to manage the day-to-day operations of ARMtech’s business.

Kenneth J. LeStrange, the chairman, president and chief executive officer of Endurance, said the move advances his firm’s goal of expansion as a specialty insurer and reinsurer.

ARMtech was founded in 1996 and entered the crop insurance services business in 1999 as a Texas-based managing general agency. ARMtech acquired American Agri-Business Insurance Co. in 2003. American Agri-Business Insurance Co. holds and agreement with the Federal Crop Insurance Corp. and is licensed to underwrite crop insurance in 33 states.

Crop insurance indemnifies farmers against crop losses by guaranteeing a set crop price, yield or total revenue for the harvest period in exchange for a premium payment.

ARMtech primarily offers insurance through the federally sponsored Multiple Peril Crop Insurance program. ARMtech offers its products through a network of agents by providing them with the technology and training to simplify the pricing, execution and submission of insurance policies in accordance with government regulations.

Brown & Brown, The Combined Group

Fla.-based Brown & Brown Inc. and the Combined Group Companies, of Carrollton, Texas, announced the acquisition of the Combined Group by a Brown & Brown subsidiary.

The acquisition includes Combined Group affiliates: The Combined Group Inc., CIA Managing General Agency Inc., Combined Independent Agencies Inc., Combined Premium Finance Inc., Anchor Claims Management Inc., Anchor Risk Management Services Inc., Case Integration Administrators Inc., Quote Express Inc. f/k/a Combined Independent Agencies of Texas Inc. and Quantum Integrated Systems Inc.

The Combined Group of Companies, with aggregate annualized revenues of approximately $12.6 million, have been serving the people and businesses of Texas for 18 years. The Combined Group companies primarily operate as managing general agencies which market, underwrite and administer risks for insurance underwriting companies. The companies focus on the areas of Texas Nonsubscriber (Workers Compensation “Opt-Out” insurance) and small account standard lines and excess and surplus property, liability and package lines of business utilizing the proprietary web-based QuoteExpress system.

Blake Stock, Michael Hardin, Edmund Dabrowski and Lynn Berg, along with their staff of insurance professionals will continue to operate the various agencies from the existing location in Carrolton as freestanding Brown & Brown operations.

National Atlantic Holdings

New Jersey-based National Atlantic Holdings Corp. plans to enter the standard and preferred auto insurance market in Texas in late 2007. National Atlantic will offer its auto coverage in conjunction with an “A+” rated Texas insurance company, which will underwrite the BlueStar Car Insurance product.

BlueStar Car Insurance will be sold exclusively through independent agents. The company said Web-based tools will make it easy for agents to select the proper amount of coverage and quote each customer. The product includes a number of variable premium discounts based on factors such as driving records.

National Atlantic plans to launch its BlueStar Car Insurance product in Texas during the fourth quarter of 2007. The company also plans to open its first branch office in Dallas in support of the underwriting and claims activities in the state.

Hub International, Templeton Southwest

Hub International Transportation Insurance Services Inc. (HUB Transportation) acquired Templeton Southwest Insurance Agency Inc. and Templeton Southwest of Houston Insurance Agency Inc. (Templeton).

San Antonio-based Templeton is an insurance brokerage specializing in commercial trucking insurance services.

Templeton has approximately $3.3 million in annualized revenue. Dennis Templeton, president and founder, will become vice president of HUB Transportation’s Texas-based operations. Templeton, an insurance veteran with more than 25 years of industry experience, founded his company in 1982.

The Templeton acquisition marks Chicago-based HUB International’s second foray into the Texas market. HUB International previously announced it entered into a definitive agreement to acquire The Rigg Group Inc., which has offices in Dallas, Houston and Fort Worth.

American Physicians Insurance Co.

Austin, Texas-based American Physicians Service Group Inc. (APS) subsidiary American Physicians Insurance Co. (API) announced it has received a Certificate of Authority from the Oklahoma Insurance Department to write physicians professional liability insurance in Oklahoma.

The company said it has already begun underwriting applicants for insurance in Oklahoma.

In the announcement, Tim LaFrey, APS’ president, stated that since April when it acquired API the company has raised approximately $36 million and contributed $10 million of additional surplus to API.

APS is a management and financial services firm with subsidiaries and affiliates which provide: medical malpractice insurance for doctors and brokerage and investment services to institutions and high net worth individuals.

The company is headquartered in Austin, Texas, and maintains offices in Dallas.

Topics Texas Mississippi Oklahoma