Argonaut Buys Coregis Group Renewal Rights
NU Online News Service, Nov. 11, 3:19 p.m. EST?Argonaut Group Inc. has reached an agreement to buy renewal rights and other assets of Chicago-based Coregis Group Inc., a public-entity insurer and a unit of Stamford, Conn.-based GE Capital.
The transaction is expected to help the San Antonio, Texas-based Argonaut Group expand its line of insurance products sold to governmental agencies–Argonaut said its public-entity insurance unit, Trident Insurance Services, will start offering policies to Coregis Group customers, agents and brokers. Further terms of the deal were not disclosed.
Argonaut's Trident Insurance Services, also based in San Antonio, offers insurance geared toward U.S. governmental entities in areas of property, inland marine, crime and general liability, as well as liability for public officials, educators, law enforcement, automobile and other specialty areas.
"This transaction allows us to broaden our scope in the public-entity market. It also gives us a broader geographic diversity in that market," said Ana Nelson, spokesperson for Argonaut Group. "What we purchased was the renewal rights to Coregis Group's expiring business. So how much of an impact this will have on Argonaut Group's bottom line will depend on how many of those policies we renew and what the rate is," said Ms. Nelson.
Michael Arledge, president for Trident Insurance Services, stated that this transaction now positions Argonaut Group as the second-largest underwriter of small-to-medium public-entity insurance in the country. Mr. Arledge also said his company plans to employ about half of Coregis' staff, primarily in underwriting and loss control.
Mark Watson, chief executive officer at Argonaut Group, added, "This renewal rights acquisition continues the expansion of Argonaut Group as a national specialty underwriter and complements the existing lines of business written through our public entity subsidiary, Trident Insurance Services."
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