Burns & Wilcox Acquires Van American Insurance

NU Online News Service, Jan. 10, 3:09 p.m. EST?Managing general agents Burns & Wilcox, Ltd., today announcedthe acquisition of the Birmingham, Ala.-based MGA Van AmericanInsurance Services, Inc.

Terms of the deal were not disclosed.

In a statement, Alan Jay Kaufman, chairman and president ofBurns & Wilcox, Ltd., said the firm's first acquisition in 2002lays the groundwork for continued growth this year and builds on anacquisitive strategy that the firm has embarked on throughout 2000and 2001.

The deal for Van American Insurance Services, effective Jan. 1,2002, is the beginning of a succession of acquisitions planned forthe new year and follows three strategic acquisitions made in thesoutheastern United States over the last two years, Burns &Wilcox said.

Burns & Wilcox has an existing branch office in Birmingham,Ala. Together with Van American, Burns & Wilcox is positioningitself as one of the largest underwriters and brokers of property,casualty and personal specialty lines business in the Southeast,which includes the Alabama, Tennessee, Georgia, Florida andMississippi markets, the company said.

In addition to supporting Burns & Wilcox's objective ofremaining the largest independent specialty insurance wholesalerand MGA in North America, Mr. Kaufman, who is also chairman andchief executive officer of The Kaufman Financial Group, the parentcompany of Burns & Wilcox, said the acquisition will allowBurns & Wilcox to diversify.

He said that Van American Insurance Services will add asignificant amount of employment practices liability andtransportation business to what the MGA already has in theSoutheast and that it will help the firm to expand its personallines offerings.

Van American Insurance Services, which was previously owned bySouthfield, Mich.-based First Mercury Financial Corporation,specializes in the placement of personal lines, transportation andemployment practices liability.

Founded in 1971 as Surface Mining Insurance Services, thecompany was renamed Van American Insurance Services, Inc. in 1997after acquiring Creative Underwriters, Inc. In 1998, Van Americanacquired Innovative Underwriters, Inc., in pursuit of additionalpersonal lines and transportation market business.

Fourteen Van American Insurance Services, Inc., employees willbe retained by Burns & Wilcox, and they will relocate to Burns& Wilcox's existing office in Birmingham, the company said.

Founded in 1969, Burns & Wilcox, Ltd., is a subsidiary ofH.W. Kaufman Financial Group, Inc. The Kaufman Financial Group isthe parent company to a group of subsidiaries, which together servemore than 27,000 agents nationwide through 30 offices in 21states.

In addition to an MGA network with expertise in all forms ofspecialty insurance, The Kaufman Group operates national specialtyinsurance underwriter and brokerage companies Floyd West & Co.and Illinois R.B. Jones, as well as companies in the reinsurance(Burns & Wilcox Re) and premium financing (Royal Premium)segments.