It's Official, NAII, Alliance Merge As PCI

PCI is based in Des Plaines, Ill., and began official operations today.

Mr. Annotti said that more than 99 percent of the members voted in favor of the merger, with only a few dissenting votes.

PCI represents more than 1,000 member companies writing 37 percent of the p-c market, amounting to $154 billion in premium.

"This is an historic day for the members of both NAII and the Alliance," said Jack Ramirez, president and chief executive officer of PCI, in a statement. "This is the most significant development in unifying the industry to occur in decades.

"The merger creates not just a bigger organization but also a better one. Our expanded market share and membership base will make us more effective advocates for our members in Congress and in statehouses across the country."

Rodger Lawson, PCI's executive vice president, said, "The merger will also allow PCI to take advantage of economies of scale and provide a greater number of products and services to members of all sizes and types.

"The overwhelming vote in favor of the merger underscores that members of both NAII and the Alliance understand the benefits that a merged organization can bring to them."

Mr. Ramirez was the president of NAII and Mr. Lawson the president of the Alliance.

Anthony Dickson, president of New Jersey Manufacturers Insurance Companies, based in West Trenton, N.J., will serve as chairman of the board of governors of PCI. Harvey Pierce, chairman and chief executive officer of American Family Insurance Group, headquartered in Madison, Wis., will serve as the vice chairman of the new organization.

Mr. Dickson called this a "terrific opportunity" for the two organizations to unite behind one voice and speak to the many issues facing carriers today, from terrorism to tort reform.

"There are a whole host of issues, and we intend to play a meaningful role and give legislators and regulators a well-developed policy for consideration," he said in an interview with National Underwriter.

Mr. Dickson said as the years have passed the two associations found that "bottom line, we are a whole lot more alike than different."

"Not only were there compelling reasons to do this, but there were no compelling reasons not to do it," said Mr. Dickson. "It just made too much sense."

"The thing I can't emphasize enough, that has impressed me from day one, was the way that members from both associations, of all sizes, signed on to the philosophy that this was going to be a consensus-driven group," he continued. "That this is going to be a group that operates in the spirit of mutual respect where every member's needs are going to be considered–and I can't tell you how much that means to me."

PCI said it will maintain a federal affairs office in Washington, D.C. and a network of regional offices in Atlanta, Austin, Texas; Boston, Pittsburgh, Sacramento, Calif.; Tallahassee, Fla.; and Trenton, N.J.

The PCI board of governors will be comprised of all 60 former members of both the NAII board of governors and the Alliance board of directors. The board will appoint a committee to review the size and composition of the board and recommend changes to the corporate governance structure and procedures.