Commerce Insurance, Commerce Banc end spat, seek to partner

The Commerce Group Inc., the property/casualty insurer based in Webster, Mass., and Commerce Banc Insurance Services of Cherry Hill, N.J., have decided to explore partnership opportunities in various states and to resolve the trademark suit pending in federal court in Massachusetts.

Under the agreement, the two companies will explore opportunities through Commerce Insurance Co. and its affiliates to offer personal and small commercial lines of business through Commerce Banc Insurance Services in Massachusetts and New Jersey, with the potential for arrangements in other states in the future.

In addition, Commerce Banc Insurance Services has agreed to refrain from using the “Commerce” name in Massachusetts for insurance-related services. In turn, The Commerce Group Inc. has agreed that it will not operate under the name The Commerce Insurance Co. in certain Mid-Atlantic states, including New Jersey, where it will use its other insurance operating subsidiaries, including American Commerce Insurance Co.

“We are very excited about the potential of a partnership with Commerce Banc Insurance Services in Massachusetts, New Jersey, and beyond” said Gerald Fels, president of The Commerce Group Inc.

“Developing successful partnerships with customer-focused underwriters is a key to our continuing success,” said Commerce Banc Insurance Services’ Chairman George Norcross.

The two said specific details regarding the future business arrangement have not yet been finalized.

The Commerce Group Inc.’s property and casualty insurance subsidiaries include The Commerce Insurance Co. and Citation Insurance Co. in Massachusetts, Commerce West Insurance Co. in California, American Commerce Insurance Co. in Ohio, and State-Wide Insurance Co. in New York.

Commerce Banc Insurance Services is the nation’s 23rd largest insurance brokerage firm with an annual premium volume exceeding $1 billion and a network of 13 offices.