Wachovia To Buy E-Risk Assets

By Daniel Hays

NU Online News Service, Sept. 9, 2:35 p.m.EST?Wachovia Corp. of Charlotte, N.C. announced today thatit has agreed to acquire E-Risk Services, a managing general agencybased in Flanders, N.J.

The sale price was not disclosed. E-Risk Services writes $60million a year in management liability insurance for the privatecompany market segment, according to Steven D. Dyson, E-Riskexecutive vice president. He said the agreement will have no impacton the four-year-old company's 36-member staff or its officelocation.

E-Risk has developed an intelligent online rating system for itsbusiness and management package product, which allows brokers toreceive instant indications of terms. E-Risk insurance coverage isprovided through underwriting subsidiaries of ACE USA inPhiladelphia.

Mr. Dyson said the combination of Wachovia and E-Risk wouldprovide "tremendous horsepower for producers to market and sell thebusiness and management packaged product."

The companies said the acquisition will allow Wachovia to marketspecialty insurance products to the private business sector,including directors and officers, employment practices liability,fiduciary, crime, miscellaneous errors and omissions, and cybererrors and omissions liability coverage.

"Wachovia's acquisition of E-Risk will align well with ourstrategic plan for expanding our insurance business lines and ourdesire to be a leader in the electronic delivery of insuranceproducts and services," said David de Gorter, president of WachoviaInsurance.

"E-Risk is a well-known, innovative company with a suite ofinsurance products and online distribution capabilities, such as anonline rating system for brokers to receive instant indications ofterms," Mr. de Gorter added. "This purchase will add a newdimension to the products and services currently offered throughWachovia Insurance."

Paul Tomasi, president and founder of E-Risk, said the

,"< acquisition is "the next step in our commitment toprovide quality insurance products and services to our targetclient base. We are very excited to be a part of the Wachoviateam."

In January 2002, E-Risk announced a strategic partnership withACE USA Professional Risk, in which ACE utilizes E-Risk Services tomarket, underwrite and service its private company D&Oliability coverage and related products. Wachovia said it wouldcontinue this strategic alliance with ACE, and offer the existingsuite of E-Risk products on behalf of ACE.

"ACE USA is committed to providing superior value to ourcustomers," said David Lupica, executive vice president, ACE USAProfessional Risk. "This relationship with Wachovia will result inour combined ability to deliver superior private company managementliability insurance products unparalleled in the industry. Wachoviaoffers ACE USA Professional Risk an excellent distribution sourcefor our products that will further our growth into targetedmarkets."

Wachovia Insurance, a division of Wachovia's Capital ManagementGroup, offers annuities, credit and individually owned life anddisability insurance, homeowners, auto, health, andmortgage/private mortgage insurance.

WI's three major lines of business include retail distribution,which manages the insurance and annuity products and programs thatare offered through the branches and on the Wachovia Web site.

The site, Info-One, is a subsidiary of Wachovia that providesWeb-based insurance and annuity solutions to large financialinstitutions, enabling their client to sell insurance and annuitiesonline; and outside distribution that provides corporate owned lifeinsurance to large corporate clients.

CMG includes asset management and investment services, providingintegrated financial products and services to individual andinstitutional investors.

Wachovia Corp., created through the Sept. 1, 2001 merger ofFirst Union and Wachovia, as of June 30, had assets of $325 billionand stockholders' equity of $30 billion.