BISYS Buys USA Insurance Group

BISYS said $39 million of the USA Insurance Group purchase price was paid in BISYS stock, in part to motivate management performance at the Melbourne, Fla.-based firm?and also because the acquired company wanted that arrangement for tax purposes.

Dennis Sheehan, president and chief executive officer of BISYS said in a conference call with analysts that his company expects USA and Tri-City will have a 10 percent growth rate for the rest of this year, given the current economic climate?although historically their growth rates have been higher.

USA's annual revenue was put at $30 million and BISYS said it generated $326 million in policy premium in 2002.

John Hahn, president of Tri-City said in a statement the deal would generate cross-selling opportunities by provide his brokerage's network of 1,200 retail brokers and agents with specialty products developed by USA Insurance Group, while introducing Tri-City's wholesale brokerage capabilities to USA Insurance Group's 1,100 retail agents.

The plan, Mr. Hahn said, is to "leverage our complementary national distribution platforms" which generated policy premium exceeding $800 million last year.

Dick Love, founder and president of USA Insurance Group, said his management also envisions cross-sale possibilities and "an opportunity to expand our specialty product portfolio beyond the transportation industry." USA provides, bus, limousine and truck insurance.

BISYS said USA will operate as part of BISYS Property/Casualty Insurance Services and maintain offices in Melbourne.

During its 2003 fiscal year, which ended June 30, BISYS said it brokered the sale of commercial p-c insurance representing approximately $550 million in premiums.

The company said its three service groups have 22,000 clients and that its, Insurance and Education services group is the nation's largest independent distributor of life insurance.