In June, Canton, Mass.-based OneBeacon Insurance Group andHudson Insurance Group in Stamford, Conn., separately announcedagreements to buy managing general agencies.

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In addition, early this month, Kansas City, Mo.-based RockhillInsurance Company acquired National Environmental CoverageCorporation, which writes environmental insurance coverage.

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In one of the two deals announced in June, OneBeacon said itagreed to buy Entertainment Brokers International InsuranceServices, an MGA specializing in entertainment, sports and leisureindustries.

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The second had Hudson, the U.S. insurance division of Odyssey ReHoldings Corp., acquiring Hooghuis Group LLC, an underwritingagency specializing in U.S. directors and officers liabilityinsurance.

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According to Hudson, Hooghuis, has been underwriting D&Obusiness for Hudson and OdysseyRe affiliates for more that 10years. In 2004, Hudson purchased 40 percent of Hooghuis to furtheralign its interests in the business, the insurance company said ina statement.

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James J. Hooghuis, chairman and CEO of Hooghuis, now joinsHudson as an executive vice president and chief underwritingofficer of Hudson Financial Products. In addition, all currentemployees of Hooghuis will join Hudson and continue to work fromtheir existing locations in Mineola, N.Y., and Farmington,Conn.

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In the OneBeacon announcement, the company said EBI, based inLos Angeles, provides commercial insurance products includingprofessional liability coverage from its headquarters and New YorkCity. EBI also provides excess workers' compensation coverage as awholesaler from its Westlake Village, Calif. office.

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EBI has been in business since 1989.

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OneBeacon also said EBI, consisting of about 60 employees, willcontinue to operate as a MGA with a network of 500 independentagents and brokers. OneBeacon agents will also have access to EBI'sproducts. The company said that most business produced by EBI willconvert to OneBeacon upon renewal.

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Kevin Rehnberg, OneBeacon's senior vice president of specialtylines, said in a statement that "EBI's deep focus on theentertainment market aligns perfectly with [OneBeacon's]specialization strategy."

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EBI Managing Partner Jack Cave said, "In OneBeacon, we've founda partner that shares our view that experience and expertise, alongwith unique product offerings are the best means to serve ourspecialized business segment."

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Separately, at Rockhill this month, Rockhill CEO Terry Younghanzcommented on the deal for NECC, saying, "We have long beeninterested in the environmental market," adding that he viewed NECCas "a perfect fit within the Rockhill Group."

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The Rockhill Group offers general liability, umbrella, property,earthquake and workers' compensation insurance.

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NECC, with offices in New York and Louisiana, has been a pioneerin underwriting environmental risks since 1989, specializing inliability coverage for restoration contractors, mold contractors,environmental contractors and consultants, and waste facilitiesthroughout the United States.

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While terms of the deal were not announced, Mr. Younghanz didcomment that NECC had been held to a six-month cancellationprovision by the prior carrier. That "has actually been a blessing,because it gave us time to really examine the market and to retool,refocus and improve upon the products NECC will offer," hesaid.

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Joe Greenwald of NECC said the company would begin rolling outthe the Rockhill product on July 31.

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Mr. Greenwald added, "Rockhill's flexibility and entrepreneurialspirit will allow us to even better serve the environmental marketand broaden our capabilities by developing new and excitingproducts.

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"Going from an independent MGU platform to a direct insurancecompany affiliation will allow NECC to more quickly respond to theunique situations that arise in this business and properlyunderwrite the individual risk."

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In a fourth deal for MGU/MGA operations, Seattle-based SeaBrightInsurance Holdings earlier this month said that its wholesalebroker subsidiary, PointSure Insurance Services, has acquired threewholesale broker divisions of Black/White Group. (See relatedarticle for details.)

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Early this month, BISYS Specialty Programs, a division of BISYSCommercial Insurance Services, said the firm has changed its nameto Five Star Specialty Programs, a division of Crump InsuranceServices Inc.

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The change is part of the consolidation of its operations withCrump Insurance Services announced last August. Crump InsuranceServices is part of insurance wholesaler Crump Group.

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"We have a new name, but we're still the same company that hasbuilt a strong reputation over the past 22 years based on ourunderwriting expertise, carrier relationships and high qualitysolutions for retail agents," said David Tooley, president of FiveStar Specialty Programs.

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He added, "This organization is well known for specializing intransportation, workers' compensation and professional liabilitybusiness. Now that we're backed by the combined resources of theCrump and BISYS Commercial operations, we have even moreopportunities to pursue new business segments and provide enhancedsolutions to our retail partners."

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Meadowbrook Insurance Group and ProCentury Corp. announced thatstockholders of both insurers approved Meadowbrook's $273 millionmerger with ProCentury, first announced back in February.

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Also this month, the board of directors of Chicago-basedSpecialty Underwriters' Alliance said it unanimously concluded, inconsultation with legal and financial advisors, that it shouldreject a proposed bid to acquire all outstanding stock by HallmarkFinancial Services.

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Hallmark, a Fort Worth, Texas-based holding company withspecialty insurance operations involved in writing nonstandardauto, E&S and aviation businesses, had offered $6.50 per sharefor Specialty Underwriters.

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Specialty Underwriters Alliance describes itself as a specialtyinsurer writing commercial products to niche groups of insureds,such as tow trucks, contractors and professional employeeorganizations, through exclusive partner wholesale agents.

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Prior to announcing the stockholder votes on the deal that gotapproved this month, Southfield, Mich.-based Meadowbrook said ithad finally received commitments for its proposed $100 millionfinancing arrangements for ProCentury deal. In June, Meadowbrookhad said it was still $15 million below that target figure.

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The transaction is expected to close in the third quarter.

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Meadowbrook Insurance Group is a risk management organizationfor the alternative risk market, specializing in alternative riskmanagement solutions for agents, professional and tradeassociations, and small to medium-sized insureds.

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ProCentury is a specialty property and casualty insuranceholding company. Its subsidiary, Century Surety Company,underwrites property and casualty insurance for small and midsizebusinesses.

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Century Surety Company primarily writes excess and surplus linesinsurance and markets its products through a select network ofgeneral agents.

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(Additional reporting by Daniel Hays and Mark Ruquet)

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