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 that it has agreed to acquire E-Risk Services, a managing general agency based in Flanders, N.J.

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

E-Risk has developed an intelligent online rating system for its business and management package product, which allows brokers to receive instant indications of terms. E-Risk insurance coverage is provided through underwriting subsidiaries of ACE USA in Philadelphia.

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

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

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

"E-Risk is a well-known, innovative company with a suite of insurance products and online distribution capabilities, such as an online rating system for brokers to receive instant indications of terms," Mr. de Gorter added. "This purchase will add a new dimension to the products and services currently offered through Wachovia Insurance."

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

,"< acquisition is "the next step in our commitment to provide quality insurance products and services to our target client base. We are very excited to be a part of the Wachovia team."

In January 2002, E-Risk announced a strategic partnership with ACE USA Professional Risk, in which ACE utilizes E-Risk Services to market, underwrite and service its private company D&O liability coverage and related products. Wachovia said it would continue this strategic alliance with ACE, and offer the existing suite of E-Risk products on behalf of ACE.

"ACE USA is committed to providing superior value to our customers," said David Lupica, executive vice president, ACE USA Professional Risk. "This relationship with Wachovia will result in our combined ability to deliver superior private company management liability insurance products unparalleled in the industry. Wachovia offers ACE USA Professional Risk an excellent distribution source for our products that will further our growth into targeted markets."

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

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

The site, Info-One, is a subsidiary of Wachovia that provides Web-based insurance and annuity solutions to large financial institutions, enabling their client to sell insurance and annuities online; and outside distribution that provides corporate owned life insurance to large corporate clients.

CMG includes asset management and investment services, providing integrated financial products and services to individual and institutional investors.

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

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Wachovia To Buy E-Risk Assets

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