Business Moves

Liberty Mutual, Wausau

Liberty Mutual Group, which sells insurance both direct and through independent agents, is discontinuing direct distribution to mid-sized businesses and now plans to distribute its commercial property/casualty insurance products in the middle market exclusively through independent agents and brokers.

Liberty Mutual defines the middle market as businesses with total account premium ranging from a low of about $150,000 up to about $1.5 million. Liberty Mutual has written about $2.5 billion in this segment.

The insurer is selling off the renewals on these direct accounts to Arthur J. Gallagher & Co., Hub International and USI Holdings Corp. .

It is also creating a new unit, Liberty Mutual Middle Market, which will accept and serve middle market business only from agents and brokers. Products available will remain workers’ compensation, general liability, commercial automobile, property, crime and umbrella for mid-sized companies.

As part of the move, the company is retiring the Wausau brand, which has been part of its middle market operation.

The moves recognize that about 95 percent of middle market business insurance is sold by independent agents and brokers, not through direct distribution. The company acknowledged that by limiting itself to direct distribution in the middle market, it was missing out on opportunities to grow.

Illinois-based broker Arthur J. Gallagher & Co. is acquiring renewal rights from Liberty Mutual’s middle market business in the Midwest and Southeast. Gallagher is also acquiring renewals and hiring the national producer group from Wausau Signature Agency. The agreement includes an initial payment of $44 million and additional payments based on revenues. The maximum amount of the additional payments is $120 million.

Chicago-based brokerage Hub is getting the renewals in Arizona, Arkansas, California, Colorado, Hawaii, Kansas, Louisiana, Nebraska, Oklahoma, Utah and Texas. Terms were not disclosed.

USI Holdings Corp., based in Briarcliff Manor, New York, is the third buyer. It is grabbing the renewal rights in the Northeast region. Further details were not available.

Ironshore, C.V. Starr

Maurice “Hank” Greenberg, the man who ran American International Group for nearly 40 years and who now runs C.V. Starr & Co., is being reunited with some executives who used to work under him when he ran AIG. C.V. Starr is teaming up with Bermuda-based Ironshore Inc. to form a new excess insurance agency.

Iron-Starr Excess Agency Limited, which will act as a specialty lines insurance and reinsurance managing general agency, domiciled in Bermuda.

Ironshore

Ironshore Inc. has appointed Steven England as executive vice president responsible for running its newly created U.S. Property/ Casualty underwriting operations based in St. Louis, Missouri. The new unit, Ironshore National Branch, will act as a U.S. underwriting office for certain of Ironshore’s property/ casualty operations. Ironshore National Branch will build out a national distribution platform for Ironshore products utilizing primarily a wholesale brokerage distribution strategy.

England was most recently president of AIG Landmark, where he managed the start up of an agribusiness practice. Prior to heading up AIG Landmark, he was regional vice president for AIG’s Commercial Insurance Group in Houston, Texas. he will report to Shaun Kelly, CEO of Ironshore’s U.S Operations.

Colt Park Insurance, Armstrong/Robitaille/Riegle

Ann Arbor, Mich.-based Armstrong /Robitaille/Riegle Inc. has merged with Colt Park Insurance Agency of Brighton, Mich. A/R/R specializes in insuring multi-state and multi-location businesses.

Colt Park Insurance Agency was founded in 1903. Jim Winchel, who lost his battle with cancer in Sept. 2008, and his wife Gloria, grew the agency, which specialized in VIP personal lines and commercial insurance.

Colt Park is licensed to write in Michigan, Ohio, Indiana, Florida and Tennessee.

Gloria Winchel will head the personal lines division and will be based in Brighton along with the Colt Park team.