In June, Canton, Mass.-based OneBeacon Insurance Group and Hudson Insurance Group in Stamford, Conn., separately announced agreements to buy managing general agencies.

In addition, early this month, Kansas City, Mo.-based Rockhill Insurance Company acquired National Environmental Coverage Corporation, which writes environmental insurance coverage.

In one of the two deals announced in June, OneBeacon said it agreed to buy Entertainment Brokers International Insurance Services, an MGA specializing in entertainment, sports and leisure industries.

The second had Hudson, the U.S. insurance division of Odyssey Re Holdings Corp., acquiring Hooghuis Group LLC, an underwriting agency specializing in U.S. directors and officers liability insurance.

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

James J. Hooghuis, chairman and CEO of Hooghuis, now joins Hudson as an executive vice president and chief underwriting officer of Hudson Financial Products. In addition, all current employees of Hooghuis will join Hudson and continue to work from their existing locations in Mineola, N.Y., and Farmington, Conn.

In the OneBeacon announcement, the company said EBI, based in Los Angeles, provides commercial insurance products including professional liability coverage from its headquarters and New York City. EBI also provides excess workers' compensation coverage as a wholesaler from its Westlake Village, Calif. office.

EBI has been in business since 1989.

OneBeacon also said EBI, consisting of about 60 employees, will continue to operate as a MGA with a network of 500 independent agents and brokers. OneBeacon agents will also have access to EBI's products. The company said that most business produced by EBI will convert to OneBeacon upon renewal.

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

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

Separately, at Rockhill this month, Rockhill CEO Terry Younghanz commented on the deal for NECC, saying, "We have long been interested in the environmental market," adding that he viewed NECC as "a perfect fit within the Rockhill Group."

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

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

While terms of the deal were not announced, Mr. Younghanz did comment that NECC had been held to a six-month cancellation provision 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," he said.

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

Mr. Greenwald added, "Rockhill's flexibility and entrepreneurial spirit will allow us to even better serve the environmental market and broaden our capabilities by developing new and exciting products.

"Going from an independent MGU platform to a direct insurance company affiliation will allow NECC to more quickly respond to the unique situations that arise in this business and properly underwrite the individual risk."

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

Early this month, BISYS Specialty Programs, a division of BISYS Commercial Insurance Services, said the firm has changed its name to Five Star Specialty Programs, a division of Crump Insurance Services Inc.

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

"We have a new name, but we're still the same company that has built a strong reputation over the past 22 years based on our underwriting expertise, carrier relationships and high quality solutions for retail agents," said David Tooley, president of Five Star Specialty Programs.

He added, "This organization is well known for specializing in transportation, workers' compensation and professional liability business. Now that we're backed by the combined resources of the Crump and BISYS Commercial operations, we have even more opportunities to pursue new business segments and provide enhanced solutions to our retail partners."

Meadowbrook Insurance Group and ProCentury Corp. announced that stockholders of both insurers approved Meadowbrook's $273 million merger with ProCentury, first announced back in February.

Also this month, the board of directors of Chicago-based Specialty Underwriters' Alliance said it unanimously concluded, in consultation with legal and financial advisors, that it should reject a proposed bid to acquire all outstanding stock by Hallmark Financial Services.

Hallmark, a Fort Worth, Texas-based holding company with specialty insurance operations involved in writing nonstandard auto, E&S and aviation businesses, had offered $6.50 per share for Specialty Underwriters.

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

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

The transaction is expected to close in the third quarter.

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

ProCentury is a specialty property and casualty insurance holding company. Its subsidiary, Century Surety Company, underwrites property and casualty insurance for small and midsize businesses.

Century Surety Company primarily writes excess and surplus lines insurance and markets its products through a select network of general agents.

(Additional reporting by Daniel Hays and Mark Ruquet)

Special Reports /

Insurers OneBeacon, Hudson, Rockhill Buy Specialty Agencies

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