NU Online News Service, July 5, 10:05 a.m. EDT

Merger and acquisition activity for insurance brokers remained busy through the month of June as Arthur J. Gallagher led the way announcing three acquisitions.

Terms of all the acquisitions were not released.

ARTHUR J. GALLAGHER ACQUIRES THREE BROKERS

The Itasca, Ill.-based insurance broker the acquisitions of Whitehaven Insurance Group, Inc. in Gulf Shores, Ala., on June 19; Broker Benefit Services, L.L.C. in Chesterfield, Mo., on June 8, and Grossman & Associates, Inc. in Beachwood, Ohio, on June 6.

Founded in 1994, Whitehaven Insurance is a retail insurance broker offering personal and commercial property and casualty insurance products and services to their clients throughout the Southeastern United States. They specialize in high risk coastal properties for condominium associations and private homeowners.

Principals Bruce Q. White, Jr., Debra Gibson, Scott Harris and their approximately 16 employees will continue to operate at their Gulf Shores location under the direction of Mitchel Brashier, Southeastern regional manager of Gallagher's retail P&C brokerage operations.

Founded in 2001, Broker Benefit Services offers employee benefit brokerage and consulting services for their clients throughout the Midwest. They specialize in group health and welfare, executive benefits and wellness plans with an emphasis on planning, design, implementation and cost containment for group businesses.

Principals Corey M. Durbin, John H. Byrne and their approximate 10 employees will continue to operate in their current location under the direction of William Ziebell, North Central Regional Executive Vice President of Gallagher's employee benefit consulting and brokerage operations.

Founded in 1980, Grossman & Associates is an employee benefits broker and consulting firm that offers group health, welfare and wellness plans for their clients primarily in Ohio. They specialize in educational institutions and consortia, public entities, non-profit organizations and professional service firms.

Ned Grossman and approximately 10 employees will continue to operate in their current location under the direction of William Ziebell, North Central regional executive vice president of Gallagher's employee benefit consulting and brokerage operations.

MARSH & McLENNAN AGENCY ACQUIRES PROGRESSIVE BENEFIT

On June 8, Marsh & McLennan Agency LLC (MMA), a subsidiary of broker Marsh Inc., says it acquired Progressive Benefit Solutions (PBS), a $5 million revenue employee benefits agency based in Raleigh, N.C.

PBS will operate as a division of Rutherfoord, a Marsh & McLennan Agency company, expanding Rutherfoord's employee benefits capabilities and resources in the Raleigh market. PBS offers a wide-range of health, wellness, compliance, and executive compensation products and services to midsize clients.

John McDonnell, William Salmon, Rick Kelly, and the rest of the PBS team will join Rutherfoord and continue operating out of PBS' existing Raleigh office. The transaction is the fourth complementary acquisition for Rutherfoord/MMA.

HUB INTERNATIONAL ACQUIRES MGIS PROPERTY AND CASUALTY

On June 19, Hub International Ltd. (Hub) says it acquired a book of business from MGIS Property & Casualty Insurance Services, Inc. (MGIS P&C), a Salt Lake City, Utah-based insurance brokerage firm that is part of The MGIS Companies, Inc.

The west coast-based operations of MGIS P&C in California and Utah will become part of the California operations of Hub International Insurance Services (Hub California).

Founded in 1988, MGIS P&C specializes in placing property and casualty insurance, primarily professional liability, for medical groups, managed care organizations and sole practitioners.

For its part, MGIS says the sale of its medical-professional liability insurance retail brokerage unit “clarifies the company's focus on its existing national broker network and leadership position within the group-physician insurance market segments.”

THE HILB GROUP ACQUIRES MDM COVENANT

On June 11, The Hilb Group, LLC completed the acquisition of MDM Covenant Insurance, LLC (MDM).

Located in Nashville, Tenn., and Atlanta, MDM was founded in 2008 by Chris Meadows, Drew Meadows and Mike Dendy. MDM is an insurance agency serving the quick serve restaurant industry with a nationwide customer base. In addition, MDM provides general insurance brokerage services to local businesses with specialties in the higher education, professional services, real estate and financial services sectors.

SOUTHPORT LANE ACQUIRES REDWOOD REINSURANCE

Southport Lane, a New York-based private equity firm, has acquired Redwood Reinsurance SPC, Ltd., a Cayman Islands-based reinsurer.

The carrier provides treaty reinsurance for workers compensation and general liability insurance in the United States.

The deal marks Southport Lane's second insurance-related acquisition over a two week span. On May 31, Southport Lane, through its subsidiary Lonestar Holdco LLC, reached a definitive agreement with Dallas National Insurance Holdings to acquire 100 percent of Dallas National Insurance Company.

BANCORPSOUTH INSURANCE ACQURIRES THE SECURANCE GROUP

On June 25, BancorpSouth Insurance Services, Inc., a subsidiary of BancorpSouth Bank, headquartered in Tupelo, Miss., says it signed a definitive agreement to acquire the assets of The Securance Group, Inc.

Securance is an independent property and casualty and life and health insurance agency headquartered in Brewton, Ala.

The transaction is expected to close on July 2nd.

In addition to the agency's Brewton headquarters office, Securance Group also operates offices in Montgomery, Ala., and Troy, located in southeast Alabama.

STAHLKA AGENCY ACQUIRES HISTORIC SQUARE INSURANCE

On June 6, Stahlka Agency, Inc., an independent insurance agency, and member of the EMS Group, based in Williamsville, N.Y., acquired Historic Square Insurance Agency's Western New York practice.

Stahlka Agency says it will merge Historic Square's office in Orchard Park, N.Y., into its existing Orchard Park location near Buffalo.

Special Reports /

AJG Leads Broker Acquisitions

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