Business Moves

Swiss Re, Berkshire Hathaway

Swiss Re concluded an agreement with Berkshire Hathaway Life Insurance Company of Nebraska to cede, a “closed block of yearly renewable term individual life reinsurance business, written prior to 2004.” The transfer is retroactive to Oct. 1, 2009. Swiss Re will report the transaction in the first quarter of 2010.

Under the terms of the agreement Swiss Re will receive a “ceding commission” of CHF 1.3 billion ($1.268 billion) and will free up around CHF 300 million ($292.5 million) in capital.

The transaction builds on Swiss Re’s tradition of portfolio steering and reinsurance risk transformation and will improve its capital efficiency, the company said. The reinsurer also indicated that it would “continue to provide administration and reporting services for the subject business.”

Christian Mumenthaler, Swiss Re’s head of Life & Health said by “transferring this block of life business, Swiss Re is monetizing intangible assets and freeing up capital. The transaction puts us in an excellent position to redeploy the capital at more attractive returns.”

The transaction deepens the relationship between Swiss Re and Warren Buffett’s Berkshire Hathaway. The reinsurer wrote off more than CHF 6 billion ($5.85 billion) as a result of the financial crisis, but was buoyed by an investment of CHF 3 billion ($2.925 billion) from Berkshire Hathaway, which received convertible notes issued by the company.

Trans Cal, Cochrane

Trans Cal sold all Zurich transportation accounts of Trans Cal to Cochrane & Co. Inc. The sale became effective on Dec. 31, 2009, and applies to existing Zurich accounts and to all open quotes.

With the sale Cochrane and Co., a family owned and operated business established in 1960 and based out of Spokane, Wash., will increase its presence in California.

Trans Cal, under the ownership of Mark and Gray Scott, will continue offering non-Zurich products and providing its usual services.

PacWest, Wilson, Paves & Associates

Wilson, Paves & Associates, which has offices in Bakersfield and Atascadero, Calif., joined PacWest Alliance Insurance Services Inc.

PacWest Alliance Insurance Services Inc. is a California-based insurance cluster that provides a managed environment for its members to maximize growth and profit while maintaining independence and ownership. The Alliance represents more than $180 million in written premium.

Insurance Inc. of Southern California

Insurance Inc. of Southern California opened an office in Riverside, Calif.

The new office is part of an effort to expand operations and continue growth through appointed carriers, and to provide consumers and business owners in the Inland Empire area with a local agency presence, the company said. The office is staffed with both a personal lines and commercial lines department.

Risk Strategies, GSM Insurance

Risk Strategies Co., a national insurance brokerage and risk management firm, completed its acquisition of GSM Insurance Services in Irvine, Calif. GSM is a specialty insurance organization with a focus on construction services, environmental and professional liability.

Gary Martinez, president of GSM, and his team of insurance professionals will service their clients from RSC’s existing Irvine, Calif., office. Martinez has more than two decades of industry experience, primarily in the environmental insurance arena.

Jordan-Quigley

Elmer R. Jordan, past president of the Independent Agents and Brokers Association of the San Fernando Valley, Calif., has sold his agency to his daughter Karen Jordan-Quigley. The new name of the agency is Karen & Michael Quigley Insurance Agency. The location of the agency will remain in Westlake Village, Calif.

According to Jordan-Quigley, the agency will continue to build upon the business practices in place since Elmer Jordan first began the agency in 1984. The agency offers personal insurance, business insurance including professional liability and financial services: life, health, disability and long-term care insurance coverages.

Confie Seguros, Vern Fonk Insurance

New York-based Confie Seguros, a provider of auto insurance with an emphasis on serving Hispanic consumers, has acquired Puget Sound, Ore.-based Vern Fonk Insurance Services Inc. Vern Fonk serves Washington and Oregon.

The acquisition broadens Confie Seguros’ presence and is in line with its goal to become the leading national insurance distribution company primarily focused on the needs of Hispanic consumers.

Confie Seguros is committed to expanding the Vern Fonk brand, which will include continuing the use of its name and purchasing other agencies in Washington and Oregon, the company said.

Robert Thielke III will remain the head of marketing. Craig Rexroat will oversee south end operations.

Liberty International Underwriters

Liberty International Underwriters (LIU), a division of Liberty Mutual Group, restructured its U.S. Specialty Casualty unit. The following organizational changes are effective immediately:

Carl Pursiano was named chief underwriting officer, U.S. specialty casualty and senior vice president. He will oversee management liability and professional liability for LIU U.S.

Trevor Howard was named senior vice president of U.S. management liability in charge of all management liability operations.

Christopher DePuy was named senior vice president in charge of lawyers professional liability (LPL) and accountants professional liability (APL).

Georges Pigault was named vice president of architects and engineers (A&E).

Michael Auerbach was named vice president of allied health and miscellaneous programs.

Mark Blankenship joins LIU as assistant vice president of architects and engineers in Chicago.

“This restructure will strengthen LIU now and prepare us for success well into the future,” said David Cohen, president of LIU U.S.

Topics California USA