Frontenac Buys Up WNC Insurance Services
NU Online News Service, Feb. 5, 4:12 p.m. EST?The private equity firm Frontenac Company, LLC, of Chicago, said it has acquired a majority interest in WNC Insurance Services, a managing general underwriter based in South Pasadena, Calif.[@@]
Frontenac said the acquisition involves a $50 million stock deal also includes PPM America Capital Partners, LLC; SE Capital, LLC; and ING, all financial institutions.
WNC provides lender-placed and voluntary property-casualty insurance for financial institutions. Its specialty insurance programs include mortgage lenders, insurance brokers and consumer finance agencies. Clients range from small community banks to large mortgage services and bank holding companies.
Carl Herrman Jr., WNC Chairman, and Carl Herrmann III, chief operating officer, will retain significant ownership stakes as well as their executive roles in the company. They will be joined by Richard Riley and Robert Goss, both formerly of Aon. Mr. Riley was named chief executive officer and Mr. Goss was named chief financial officer.
Last year, Frontenac was involved in unsuccessful negotiations to purchase scandal-ridden insurance brokerage Near North National Group in Chicago. Near North became available after its chief executive and founder, Michael Segal, was indicted last year on charges he embezzled millions from the firm's premium trust fund account. The firm also was indicted on fraud charges. An April trial is scheduled.
Pat Blandford, a principal at Frontenac, said the equity acquisition will help WNC grow organically and allow it to further its growth strategy. He said no further details of the agreement would not be made public.
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