Business Moves

NAPCO

Wholesale commercial insurance brokerage NAPCO has relocated its corporate headquarters to an 11,000-square foot office inside the Woodbridge Hotel and Conference Center complex in Iselin, New Jersey.

NAPCO says the move was prompted by steady growth in the catastrophic coverage segment of its business. The company was previously headquartered in Edison, New Jersey. Thirty-six employees are based in the office.

The space features a state-of-the-art conference room, with a floor-to-ceiling video conferencing system to link NAPCO to its clients as well as the company’s other U.S. and Bermuda locations

AIU/Transatlantic

AIU Holdings, Inc. sold a portion of its investment in Transatlantic Holdings (TRH) for approximately $500 million. AIU said the transaction demonstrates progress toward the sale of AIU Holdings’ interests in TRH, and advances its previously announced strategy to sell non-core, affiliated investments.

It also further positions AIU Holdings — the P/C and general insurance operations of American International Group (AIG) — as an independent entity in preparation for the potential sale of a minority stake in the business, which ultimately may include a public offering of shares, depending on market conditions.

Through its subsidiary, American Home Assurance Co., AIU Holdings owns approximately 14 percent of TRH’s common shares issued and outstanding.

Arch Insurance

New York-based Arch Insurance Group has established two principal underwriting groups in its U.S.-based operations: the Arch Property & Casualty Group and the Arch Financial & Professional Liability Group.

Michael Murphy has been named president of the Property & Casualty group. He served most recently as a senior executive vice president of Arch Insurance Group.

David McElroy will serve as president of the Financial & Professional Liability group. In addition, Arch has named John Rafferty as head of the Executive Assurance division of the Financial & Professional Liability Group. Rafferty most recently led The Hartford’s Financial Products division.

ProMutual/FinCor

Massachusetts-based medical liability insurance company Medical Professional Mutual Insurance Co., known as ProMutual, will acquire Lansing, Michigan-based medical liability insurer and risk management company FinCor and its subsidiaries

The subsisidiaries are MHA Insurance Co. (MHAIC), Washington Casualty Co. (WCC), FinCor Solutions, Inc., Risk Management and Patient Safety Institute, Inc. (RM&PSI), and Capital Risk Solutions SPC.

Shareholders will receive $164 million in cash when the deal closes, with two potential additional cash payments of up to $73 million.

The transaction is expected to close by the end of the third quarter of this year, after shareholder and regulatory approvals.

For ProMutual Group, one of the top 10 medical liability insurance providers in the country, and one of the largest in the Northeast, the acquisition reflects the organization’s focus on expanding its service footprint both organically and through acquisition.

ProMutual said that it intends to preserve the FinCor-affiliate brands and operate FinCor as an independent subsidiary of ProMutual. It also plans to retain FinCor’s employees. It has in excess of $2.2 billion in net admitted assets, more than $600 million in policyholder surplus and over $300 million in direct written premium in 2008.

Bostonian Group

Massachusetts-based benefits firm The Bostonian Group has formed a property/casualty risk management practice group called Bostonian Solutions Property & Casualty.

The firm said its risk management practice will specialize in protecting companies and their employees against a wide variety of financial, operational and strategic risks. The risk management practice will help companies to lessen liability exposures while taking advantage of lower rates in the soft market.