Business Moves

First Mercury, Valiant

Michigan-based First Mercury Insurance Co. is acquiring New York-based Valiant Insurance Group Inc. in a transaction valued at approximately $55 million.

The transaction is expected to close in the fourth quarter. Valiant’s existing classes of business to be retained by First Mercury include primary and excess casualty, professional and management liability and marine. First Mercury also intends to retain Valiant’s underwriting teams producing those classes of business.

Valiant President and CEO Gary Dubois, and Scott Bayer, senior vice president of Valiant, also are joining First Mercury.

Classes of Valiant business that are not consistent with First Mercury’s specialty niche underwriting focus will be discontinued, the companies said.

NAU Group, QBE

New York-based private equity firm Lightyear Capital has completed the sale of crop insurer The NAU Group to QBE Holdings Inc.

The transaction was for $565 million in cash. In addition, the stockholders of NAU received a cash dividend of $30 million prior to closing. Lightyear originally invested in NAU in May 2005. Since then, NAU has risen from the seventh- to third-largest writer of multi-peril crop insurance in the U.S., with a current market share position of 11 percent.

Praxis Consulting, Aon Recovery

Indiana-based Praxis Consulting Inc., a specialty provider of recovery and consultative services, has completed its acquisition of Aon Recovery Inc., the subrogation specialty business unit of Aon Global Risk Consulting.

Praxis’ business model, approach and technology remain intact. The increased capacity and expertise will result in added depth to the company’s repository of knowledge and recovery services available to clients. Praxis will maintain an office in Long Island.

Tower Group, OneBeacon

Tower Group Inc. has completed its acquisition of the personal lines business of OneBeacon Insurance Group for $167 million.

The transaction includes Massachusetts Homeland Insurance Co., York Insurance Co. of Maine and two management companies that are attorneys-in-fact for Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer. Tower has also purchased the surplus notes issued by the two reciprocal insurers.

OneBeacon’s Personal Lines division writes and manages private passenger automobile, homeowners and personal package business in the northeastern United States. It has offices in Canton, Mass., South Portland, Me. and Williamsville, N.Y.

Avoca

Avoca Insurance Holdings has established Manchester Specialty Programs Inc. (MSP) as a national programs platform based in New Hampshire.

The company will focus on providing a comprehensive range of coverage to specialty industry sectors in partnership with highly rated carriers. Manchester Specialty Programs will provide specialty commercial property and casualty coverage on an open-brokerage basis, and is licensed to do business as a program administrator in all states.

William D. Thompson has been named president and CEO of the organization, and will direct the development and management of all program business. Thompson previously served as principal of Smith Bell & Thompson Inc., a Vermont-based specialty underwriter.

Andrew Carvill, CEO of Avoca Insurance Holdings commented said the company expected to roll out its first major program in the coming weeks.

SAN Group, American Heritage, Reed Insurance Agency

Several Northeast insurance agencies have recently joined the New Hampshire based Satellite Agency Network (SAN) Group Inc., according to the firm.

Wallingford, Conn.-based American Heritage Financial and New Windsor, N.Y.-based Reed Insurance Agency announced partnerships with the network this month.

American Heritage Principal Carl Cornaglia and Reed Founder Kevin Reed both said they joined the network to enhance their market access while remaining independent agencies.

SAN Group says it had over 3,300 independent agency partners.

Topics New York