Business Moves

The Hartford, Allianz SE

The Hartford Financial Services Group Inc. finalized a $2.5 billion capital investment by Allianz SE.

Under the agreement, Allianz purchased, at $31 per share, $750 million of preferred shares convertible to common stock after receipt of applicable approvals, and $1.75 billion of 10 percent junior subordinated debentures. The debentures are callable by The Hartford beginning 10 years after issuance. Allianz SE also received warrants that entitle it to purchase $1.75 billion of common stock at an exercise price of $25.32 per share, subject to shareholder approvals. The warrants expire in seven years.

Ramani Ayer, The Hartford’s chairman and CEO, said the investment would strengthens his firm’s capital position and enhance its ability to weather volatile markets while competing for business.

Wells Fargo, EMAR Group

San Francisco-based Wells Fargo Insurance Services, part of Wells Fargo & Co., acquired the EMAR Group, an independently owned commercial insurance agency headquartered in Livingston, N.J., with an office in Florida. Terms of the agreement were not disclosed.

Founded in 1971 by Emil Solimine in New Jersey, EMAR is an agency in the Tri-state region that serves middle market and upper middle market clients, as well as risk management customers. The agency concentrates in transportation, construction, real estate and financial institutions industries. EMAR also has access to specialty market programs in small business niches, including the limousine services and restaurant industries.

“EMAR will significantly expand and build on our commercial insurance capabilities on the East Coast said Dave Zuercher, head of Wells Fargo’s International and Insurance Services Group.

“Joining up with the EMAR team will increase our presence significantly in New Jersey,” said Gary Tully, head of Wells Fargo Insurance Services Northeast Inc.

Solimine and his son, David, will continue bringing the EMAR relationship business model to companies in Florida and New Jersey.

DarwinPro, Allied World

Alleghany Corp. reported that the previously announced merger of its subsidiary Darwin Professional Underwriters Inc. with Allied World Assurance Co. Holdings Ltd. is complete.

Under the terms of the transaction, Allied World acquired all of the issued and outstanding shares of Darwin common stock for cash consideration of $32 per share. The transaction resulted in aggregate proceeds to Alleghany of approximately $300 million in cash for its 9.3 million shares of Darwin common stock, which represented approximately 55 percent of the issued and outstanding shares of Darwin common stock.

Alleghany, through its subsidiary Alleghany Insurance Holdings LLC (consisting of its insurance operating units RSUI Group Inc., Capitol Transamerica Corp. and Employers Direct Corp.), writes property and casualty insurance.

Risk Management Solutions

Newark, Calif.-based Risk Management Solutions opened a new office in Beijing, China, as a sign of its commitment to support the growth of the property insurance industry and risk mitigation efforts in China. The office in central Beijing will be headed by Zifa Wang, an earthquake engineering expert who has joined RMS from the China Institute of Engineering Mechanics (IEM), where he was formerly the director and research professor.

China is highly exposed to natural hazards, and has the largest concentration of earthquake risk in the world, with almost half of the population living in areas of high to moderate earthquake hazard, RMS said. The devastating impacts of the May 2008 Wenchuan Earthquake highlight the importance of risk mitigation and the instrumental role insurance has in helping to accelerate recovery efforts.

“It’s clear that China’s insurance industry is set to become a driving force on the global scene, and that this demands specialized solutions that can be delivered against the challenges of rapid growth,” said Matthew Grant, global head of client development.

Prior to joining the IEM — a government sponsored, nonprofit research institute — as director in 2003, Wang worked in various IT companies as a principal software engineer in Silicon Valley, Calif. From 1995 to 1998, he was at RMS where he developed earthquake and financial models.

Honolulu Association of Insurance Professionals

Insurance industry leaders strutted down the catwalk modeling fashions from noted local designers in the Honolulu Association of Insurance Professionals’ (HAIP) Insurance Fest Fashion Show.

This second annual fundraising event was held to support the association’s annual Safety Essay Competition, which is in its evaluation phase. Public high school students compose stories that illustrate the dangers of substance abuse and/or reckless driving to raise awareness about these important issues while competing for cash awards.

“The HAIP is actively involved in the community and promoting education programs,” said Leila Tamashiro, HAIP president. “This was a great opportunity to raise funds for these programs while showcasing local designers with individuals from our corporate partner companies in a relaxed and fun environment.”

The runway show featured top local insurance executives modeling collections from Hawaii designers.

The Honolulu Association of Insurance Professionals is the local chapter of the National Association of Insurance Women.

Topics New Jersey China Allianz