Alliance, NAII Join To Form PCI

Jack Ramirez, president of the Des Plaines, Ill.-based NAII said the two boards are "strongly urging their members to vote in favor of the merger. PCI will create the nation's premiere trade association representing the property and casualty industry."

He added that "with over 1,000 members that write approximately 40 percent of the market, PCI will have the resources and staff to provide its members with more and better services than they currently enjoy, and with the political strength to have a much more powerful voice in state capitals and in Washington."

Rodger S. Lawson, president of the Downers Grove, Ill.-based Alliance, said his group believes a unified organization would be "positioned to operate more effectively and efficiently. The new organization's structure and focus will enhance our ability to attract additional members and become an even stronger voice in the public policy arena."

If the merger is approved, Mr. Ramirez would be president and chief executive officer of PCI, while Mr. Lawson would be executive vice president.

In early discussions, the new organization was to be known as the National Association of Property Casualty Insurers. However, both boards agreed to the PCI name because, they said, it more accurately communicates who the organization represents and is more easily recognized by key audiences.

PCI would represent companies that write nearly 50 percent of the market in private passenger auto insurance, nearly 40 percent of the homeowners market, 32 percent of the commercial insurance market, and over 39 percent of the workers' compensation market, the groups said.

Under the merger agreement, PCI would have a total of 140 employees and would be headquartered in the Chicago suburb of Des Plaines, Ill., which now serves as NAII's base. In addition to an expanded staff in Washington, D.C, PCI would have regional offices in Atlanta; Austin, Texas; Boston; Pittsburgh; Sacramento; Tallahassee, Fla.; and Trenton, N.J. In anticipation of the merger, some staff layoffs have already taken place at the Alliance.

Anthony Dickson, president of New Jersey Manufacturers Insurance Companies and past chairman of the Alliance, would serve as chairman of the board of governors of PCI. Harvey Pierce, chairman and CEO of American Family Insurance Group and current first vice chair of NAII, would be the vice chairman of the newly formed association.