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Top East Region Insurance M&As of 2020

2021-01-05 17:30:58

The main M&A story of 2020 was a global one that attracted more readers in every geographic region than in any other. Since it was first announced in March, the proposed merger between Aon and Willis has remained the main merger and non-merger insurance story throughout the year. But there were also other proposed and completed transactions that caught the attention of the Insurance Journal audience in the East region. Here are the most popular M&A reports of interest to Eastern readers in 2020:

Aon is going to buy Willis Towers Watson

Global insurance brokers Aon and Willis Towers Watson announced in March that they had agreed to merge in an all-equity transaction with an implied combined share value of approximately $ 80 billion. Upon completion of the combination, Aon's existing shareholders will own approximately 63% and existing Willis Towers Watson shareholders will own approximately 37% of the combined company on a fully diluted basis. According to S&P, Aon plans to partner with Willis in an all-stock transaction worth approximately $ 30 billion, exchanging Willis stock for Aon stock. The combined company will be named Aon. Combined, the companies have more than $ 20 billion in revenue. Aon reported $ 11 billion in revenues with $ 2.2 billion net income for 2019, compared to $ 9 billion in revenues and $ 1.4 billion net income for Willis Towers Watson. Aon will maintain its headquarters in London, United Kingdom. The parent company is incorporated in Ireland. The combined company will have 95,000 employees worldwide, with what it said will be a "significant presence" in Chicago, New York and Singapore. John Haley will assume the role of Executive Chairman with a focus on growth and innovation strategy. The combined company will be led by Greg Case and Aon Chief Financial Officer Christa Davies. The board of directors will consist of proportional members of the current directors of Aon and Willis Towers Watson. In December, Aon confirmed that the European Commission has begun a review of the proposed merger. Aon said the review is a common next step "for a transaction of this size and complexity" and said it is on track to close the deal in the first half of 2021.

Allstate buys National General for $ 4 billion, Growing Auto, Independent Agent Business

The American insurer Allstate Corp. announced in July its plans to acquire National General Holdings Corp. for about $ 4 billion in cash, expanding its auto insurance business at a time when the coronavirus was crushing traffic on the roads and reducing claims. The deal involved a total deal value of $ 3.92 billion, Reuters calculations showed. The New York-based National General provides personal and commercial auto, homeowner, umbrella, recreational vehicles, motorcycles, lenders, supplemental health, and other niche insurance. Auto insurance accounts for about 60% of the premium with a significant presence in the non-standard automotive market. "The acquisition of National General accelerates Allstate's strategy, headquartered in Illinois, to increase market share in personal property liability and significantly increase the distribution of our independent agents," said Tom Wilson, CEO of Allstate. National General has approximately 42,300 independent agents. Allstate would become one of the top five personal lines providers in the independent agent distribution channel by combining Encompass and Allstate & # 39; s Independent Agent operations with National General.

Tokio Marine Completes Acquisition of Pure Group

Tokio Marine Holdings announced in February that it had completed the acquisition of New York-based Privilege Underwriters Inc. and its subsidiaries, known as Pure Group, which specializes in the high net worth US insurance market. The purchase price was $ 3.1 billion (approximately JPY 325.5 billion). The deal was completed through Tokio Marine & # 39; s 100% subsidiary HCC Insurance Holdings, Inc. Tokio Marine acquired 100% of the shares of Privilege Underwriters Inc. from existing shareholders, including Stone Point (51%), KKR (34%), AXA XL (10%), pure management and others (5%). For 2018, Pure reported fee income of $ 229 million, pre-tax profit of $ 73 million and $ 963 million in premiums under management. The company profile consists of homeowners (57%), car (23%), inland shipping (9%) and other lines for high net worth customers.

ProAssurance appears to be acquiring NORCAL in a $ 450 million deal

In February, health insurance company ProAssurance Corp. agree to provide medical professional indemnity insurer NORCAL Mutual Insurance Co. to be acquired following the demutualization of NORCAL in a $ 450 million transaction. The combination is expected to create the third largest specialist liability insurance writer for healthcare providers and institutions in the country. Based in Pennsylvania, NORCAL writes in 39 states. It reported $ 342 million in direct written premiums in 2018 and $ 50 million in net profit. Underwriting performance and overall profitability of the company "recently deteriorated sharply as a result of a significantly unfavorable reserve development," said Fitch Ratings, which negatively posted its "A" ratings for ProAssurance after announcing the deal. Headquartered in Birmingham, Alabama, ProAssurance serves more than 54,000 health care providers in 49 states. The company had gross written premiums for medical professional liability of approximately $ 475 million on an annual basis.

Travelers acquiring Plymouth Rock's digital agency InsuraMatch

In December, The Travelers Companies agreed to a takeover InsuraMatch, a national digital independent insurance company, of the Plymouth Rock Group of Companies. Encharter Insurance, the Massachusetts-based brokerage in Plymouth Rock, is not part of the transaction. Founded in 2014 as part of Boston-based insurer Plymouth Rock, InsuraMatch operated as an autonomous business unit. In 2019, InsuraMatch produced nearly $ 32 million in premiums. Travelers said InsuraMatch will continue to operate independently and manage all of its own partnerships with airlines.

NFP acquires Rose & Kiernan in New York

NFP, an insurance broker and adviser, has appointed Rose & Kiernan Inc. acquired in a transaction that closed on August 1. Rose & Kiernan, based in Albany, NY, is a multidisciplinary property / accident, bond, and employee benefits insurance broker in New York State and New England. The company was named one of Insurance Journal's 100 Best Independent Agencies in August 2019.

Arthur J. Gallagher acquires the CMS of New York

In March, Arthur J. Gallagher & Co. it in Melville, N.Y. established CMS. Founded in 1996, CMS is a wholesale insurance broker working with agents in the U.S. The team specializes in posting coverages for construction, import, wholesale / distribution, manufacturing, and real estate businesses, as well as personal lines.

Hub Northeast acquires assets from The B&G Group in New York

Global insurance broker Hub International Ltd. announced in May that its affiliate, Hub International Northeast Limited, announced the assets of The B&G Group Inc. has acquired. Based in Plainview, NY, The B&G Group provides commercial insurance to a variety of industries including real estate and business services and construction. In addition, it is a personal insurance broker. With The B&G Group, Hub adds more than 100 employees to its regional presence in the Northeast, bringing the total number of employees in Long Island to 350. Evan Bower, president of The B&G Group, will join Hub Northeast and report to Doug Schenendorf, president of Hub & # 39; s Long Island division.

Amynta Group acquires bonding business from Aspen Insurance

Amynta Group, a provider of property / accident protection and warranty products and services, has acquired the underwriting business of Aspen Insurance. The company will now operate as Amynta Surety Solutions. As part of the transaction, Amynta said it will partner with Crum & Forster to provide the insurance technical capability for the business and acquire Aspen's existing bail bond portfolio. Amynta Surety Solutions will be the exclusive writer of major commercial surety bonds for Crum & Forster, according to the announcement. Amynta Surety Solutions will be headquartered in Glastonbury, Conn., And will continue under the leadership of Michael Toppi, CEO of Amynta Surety Solutions.

Home Insurance MGA Hippo Completes Acquisition of Spinnaker Insurance Co..

In September, California-based Hippo, an insurtech general agent dedicated to home insurance, completed the acquisition of Spinnaker Insurance Co. with an extension to other states on the board. The deal follows a multi-year partnership between the companies. Spinnaker is a New Jersey-based national property / casualty insurer licensed to do business in all 50 states. Hippo noted that Spinnaker has been the carrier platform's largest partner since 2017. With Spinnaker and its other carrier partners, Hippo offers home insurance in more than 31 states.

Paragon Completes Acquisition of Trident Public Risk Solutions from Argo

Paragon Insurance Holdings, a national general agency, said in May that it had closed the purchase of Trident Public Risk Solutions from Bermuda-based Argo Group. Trident provides insurance and risk management for public sector entities such as counties, municipalities, schools, special districts, and long-distance government agencies. It operates through a distribution network of national brokers and local agencies. It has offices in San Antonio, Texas and Springfield, Massachusetts. Paragon is headquartered in Avon, Connecticut, and writes more than 20 insurance programs, including those for arborists, skiing facilities, pest control, lumber, precision manufacturing and wineries.

Norman-Spencer Agency acquires assets from Intercorp, BNK Insurance Services

Norman-Spencer Agency, a Dayton, Ohio-based program manager and wholesale brokerage company, acquired the business assets of Intercorp Inc. in May. and BNK Insurance Services. Intercorp is headquartered in Ephrata, Pennsylvania, and BNK Insurance Services is headquartered in Dallas, Texas. Intercorp manages national insurance programs and operates as a wholesale broker in the field of professional and environmental liability. Under the direction of owner Elaine Matternas, as a division of Norman-Spencer, the company will continue to manage professional indemnity insurance programs for appraisal firms and appraisal management firms. BNK Insurance Services is a general agency specializing in professional liability insurance for niche industries including real estate agents, home inspectors and mortgage brokers. Norman-Spencer said the deal is an attempt to continue to grow and bolster its professional real estate programs.

CBIZ acquires Alliance Insurance Services of Washington D.C.

Cleveland-based CBIZ Inc., a provider of financial, insurance and advisory services, acquired virtually all of the assets of the independent insurance agency Alliance Insurance Services Inc. in February. acquired from Washington D.C. Small and medium AIS clients include charter schools, real estate, construction and technology in the D.C. metro area. AIS has nine employees and approximately $ 1.6 million in annual revenue.

Hudson acquires the Allegheny Group and its underwriting business in Pennsylvania

Specialized insurer Hudson Insurance Group agreed in November to acquire Allegheny Group Inc. (AGI) and its subsidiaries from its private shareholders. With the acquisition of Pennsylvania-based AGI, Hudson will own Allegheny Surety Co., a Pennsylvania insurance company, and Allegheny Surety Agency, the affiliated management agency. Allegheny Surety serves independent agents in the mid-Atlantic region. Hudson, with headquarters in New York City and offices in the United States and in Vancouver, Canada, underwrites specialty primary and additional insurance on both an admitted and unauthorized basis. Hudson is the US insurance division of Odyssey Group Holdings, which is owned by Fairfax Financial Holdings.

NFP acquires Pennsylvania-based insurance brokerage team Scotti

In May, insurance broker NFP announced that LFG Inc. that does business as Team Scotti. Based in Pittsburgh, Penn., And founded in 1987, Team Scotti is a national insurance broker offering insurance and personnel programs to Major League Baseball (MLB) and Minor League Baseball (MiLB) and their subsidiaries. The company plays a risk management role for MLB, including providing disability insurance for key players. NFP and its subsidiaries are committed to meeting the risk management needs of North American professional sports leagues, including the NBA, NFL, NHL, WNBA, and the ATP Tour, as well as other professional and amateur sports leagues, teams, organizations, athletes, and events. The acquisition of Team Scotti adds retail brokerage expertise related to MLB and MiLB.

Arthur J. Gallagher & Co. takes over the Walsdorf office in New York

Arthur J. Gallagher & Co. reported in January that Huntington, N.Y. based Walsdorf Agency Inc. Founded in 1926, Walsdorf Agency is a third generation, family-owned commercial and personal insurance company with expertise in real estate. David L. Walsdorf, Louis J. Walsdorf and their associates have moved to Gallagher & # 39; s Jericho, N.Y., office headed by Patrick Kennedy, head of Gallagher & # 39; s retail brokerage in the Northeast region.

Arthur J. Gallagher & Co. acquires Cool Insuring Agency in New York

In December Arthur J. Gallagher & Co. Queensbury, NY-based Cool Insuring Agency Inc. Founded in 1857, Cool Insuring Agency provides commercial, personal, life and health insurance and advisory services to customers in the Northeastern US from offices in Queensbury and Latham. Agency President Anthony Mashuta and Ira Neifeld, senior vice president, and their employees will continue to operate from their current locations.

AHT Insurance acquires Mason & Mason Insurance

AHT Insurance acquired Mason & Mason Insurance in July. Mason's offices in Whitman, Massachusetts, near Boston, and North Conway, N.H., become the eighth and ninth of the AHT nationally. Mason is a risk management and insurance brokerage service for venture capital, technology and life sciences companies. The company is also a provider of insurance for builders and renovators of custom homes in Massachusetts and the managing agent for the insurance program sponsored by the Builders and Remodelers Association of Massachusetts. AHT and Mason are two of the founders of TechAssure, a non-profit organization dedicated to advancing corporate insurance and risk management for technology, life sciences and venture capital-related risks.

Starkweather & Shepley Insurance Brokerage acquires Newport Insurance Agency

The independent agency Starkweather & Shepley Insurance Brokerage in Rhode Island opened the Newport Insurance Agency in Middletown, R.I. acquired, an independent agency with 13 employees serving commercial and private clients in southern New England. Newport Insurance, now a division of Starkweather & Shepley, will continue to serve customers from its Middletown location.

Paragon Completes Acquisition of Trident Public Risk Solutions from Argo

Paragon Insurance Holdings, a national general agency, said in May that it had closed the purchase of Trident Public Risk Solutions from Bermuda-based Argo Group. Trident provides insurance and risk management for public sector entities such as counties, municipalities, schools, special districts, and long-distance government agencies. It operates through a distribution network of national brokers and local agencies. It has offices in San Antonio, Texas and Springfield, Massachusetts. Paragon is headquartered in Avon, Connecticut, and writes more than 20 insurance programs, including those for arborists, ski facilities, pest control, lumber, precision manufacturing, and wineries. Paragon said the transaction positions it as one of the largest providers of commercial insurance coverage for public entities in the US.


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