Business Moves

The Hanover, Campania Group

Massachusetts-based insurer The Hanover has completed its acquisition of Virginia-based Campania Group, which provides professional and general liability solutions for durable medical equipment suppliers and healthcare providers, including behavioral health specialists, eldercare providers, and podiatrists. Founded in 1992, the Campania Group offers products in 30 states, as well as the District of Columbia.

The Hartford, TARP

The Hartford Financial Services Group, Inc. has repaid the U.S. government for its bailout by repurchasing all of The Hartford’s preferred shares issued to the U.S. Department of Treasury under the also known as the Trouble Asset Relief Program (TARP). The Hartford paid $3.4 billion to the U.S. Treasury to repurchase the preferred stock, plus a final dividend payment of about $21.7 million. The Hartford funded the repurchase with proceeds from its recent equity and debt offerings, as well as from available resources. In June 2009, the insurer took $3.4 billion of federal bailout money, the maximum it was authorized to accept, to bolster capital in the wake of large investment losses. The U.S. Treasury continues to hold warrants to purchase approximately 52 million shares of The Hartford’s common stock at an initial exercise price of $9.79 per share. The company does not intend to repurchase the warrants from the U.S. Treasury.

Marsh, HSBC Insurance Brokers

Marsh has completed its previously agreed acquisition of HSBC Insurance Brokers Ltd. (HIBL), a wholly owned subsidiary of HSBC Bank, in the UK and other key markets in Asia and the Middle East. The deal was first announced last December.

The purchase price was $205.4 million. Concurrently with the acquisition, Marsh entered into a preferred agreement to provide services to corporate and private clients referred to Marsh by HSBC.

Victor O. Schinnerer, HSBC Insurance Energy Brokerage

Victor O. Schinnerer & Co. Inc. has acquired HSBC Insurance Services (USA) Inc., the energy insurance brokerage of HSBC Insurance. The acquisition adds energy companies, utility companies and specific contractor classes to Schinnerer’s property/casualty insurance offerings. The acquisition also expands the New York City presence of Schinnerer and its list of satellite locations.

Schinnerer is a subsidiary of Marsh & McLennan Companies Inc., and its acquisition of HSBC Insurance Services (USA) is part of the global agreement announced in December 2009 in which HSBC Insurance Brokers Limited and related businesses and companies within the HSBC Group were acquired. The name for the new program is Energy P&C. Schinnerer will serve as managing general underwriter of the program.

Utica Mutual, Founders Insurance Co.

New York-based Utica Mutual Insurance Co. will acquire Founders Insurance Co. of Des Plains, Ill. for an undisclosed sum.

Founders has annual premium of approximately $115 million in 47 states and the District of Columbia. Founders employs 200 people, mostly in Illinois, and specializes in writing non-standard auto coverage, liquor liability and general liability coverage. Most of its automobile business is concentrated in the Midwest.

Utica Mutual has annual sales of over $600 million, is headquartered in New Hartford, N.Y. and employs a total of 1,250 people at seven regional offices and three claims offices.

Both companies’ products are distributed through independent insurance agencies.

Utica Chairman and CEO J. Douglas Robinson said the transaction will help Utica to grow its footprint. “The addition of Founders grows our organization; it adds to our premium writings and diversifies our business on both a product basis and geographic basis,” he said.

Following the announcement, A.M. Best Co. said that the financial strength ratings for both companies are unchanged.

The deal, which is subject to regulatory approval, is expected to close in the second quarter

Northeast Bancorp

The parent company of Maine-based Northeast Bank Insurance Group has raised $16.2 million in new investment it says will be used to expand its insurance, banking and financial services divisions.

Northeast Bancorp says the group of investors will also purchase 40 percent of the outstanding shares of the company for approximately $12.9 million.

Investors in FHB, which will be merged into Northeast and then dissolved, will own approximately 60 percent of the company.

The existing management team of Northeast will continue with the company: Jim Delamater will become president and CEO of Northeast’s Community Banking Division, Pender J. Lazenby will remain as the chief risk officer of Northeast, Robert S. Johnson will become chief financial officer of Northeast’s Community Banking Division and Marcel C. Blais will become chief operating officer of Northeast’s Community Banking Division.

Northeast’s board of directors will comprise nine members, including representation from the existing Northeast board of directors.

Bollinger, John J. Slattery Associates

New Jersey-based insurance brokerage Bollinger has acquired John J. Slattery Associates Inc., a provider of employee benefit and individual medical products and services to independent brokers throughout the tri-state area.

The firm, which will operate as Slattery Associates, was founded in 1979 by John J. Slattery and is headed by his Desmond Slattery and Deirdre Slattery. Slattery Associates employs 24 people in its Wall, New Jersey office. Desmond Slattery will serve as senior vice president.

Tuscano, TuscanPro

Pennsylvania-based wholesale insurance broker W.N. Tuscano Agency has launched a professional liability insurance division called TuscanoPro to work with retail insurance agents. Tim Hoelle, a professional liability broker with more than 25 years of experience, heads the division.

The new division comes a year after Tuscano expanded its operations into North Carolina and Florida.

Topics USA