MMC Unit Makes Acquisition

The units, said spokeswoman Nancy Oblinger, deal in different markets but complement each other, broadening the offerings of the two. The acquisition would also enhance the distribution line of the firms.

Prentis Donegan, with offices in London and Bermuda, brokers property-casualty, cargo, all lines of marine and energy coverage, specializing in a number of areas including major industrial, real estate, rail, trucking, exploration and production as well as the chemical and refining industries, shipyards, ports and terminals, and the cruise industry.

Price Forbes, with offices also in London and Bermuda, specializes in non-marine property, particularly in utilities and energy, casualty, medical stop loss, professional liability, directors and officers insurance, and binding authority business.

The combined firms, which will operate under the name Price Forbes, will produce premiums of approximately $585 million and bring a staff totaling 175 people, with Prentis Donegan contributing $331 million in premium to the deal, said Ms. Oblinger, and Price Forbes the remaining $254 million.

The merger would double the size of Price Forbes' presence in the Lloyd's, London and Bermuda markets.

Price Forbes is a unit of a wholesale insurance broker and underwriting management group that also includes Crump Insurance Services and Victor O. Schinnerer in the U.S. and Encon in Canada.

"This transaction is a first step in growing the Group's wholesale presence globally and demonstrates our commitment to serving independent clients," said Jeremy D. Cooke, president and chief executive officer of the group.

Simon Fisher, the chairman of Price Forbes, will remain as chairman. Michael Donegan, chairman of Prentis Donegan, will become chief executive officer.