U.S.I. Sells Fla. Unit To Brown & Brown

In a statement, David L. Eslick, chairman and chief executive officer of the Briarcliff Manor, N.Y.-based brokerage firm, said the sale is part of its plan to divest itself of operations "that do not fit well with the company's long-term business strategy."

The office is a mid-market retail commercial property-casualty insurance agency operation with annualized revenue of approximately $1.5 million.

A Brown & Brown spokesperson told National Underwriter that Michael Powell, manager of the office for U.S.I., and the office staff would be combined with the firm's existing operations in the city. Mr. Powell would become a sales manager for the combined operations.

In late December, U.S.I. lowered its earnings guidance for 2004 and said it laid-off 1 percent of its workforce, citing the effects of a softening insurance market and overconfidence in the company's ability to attract new business. The firm also said it would be disposing of three underperforming operations that are not a fit with U.S.I.'s business character.

Another Brown & Brown acquisition announced last month, American Specialty Companies of Roanoke, Ind., was completed, the firm said.

American Specialty, with annualized revenues of approximately $13 million, provides insurance and risk services for the sports and entertainment industry with clients in professional sports, motor sports, amateur sports and the entertainment industry. American Specialty will continue to operate from its corporate campus in Roanoke as a stand-alone Brown & Brown operation.

Terms of that deal were not released.

Brown & Brown also announced the formation of Healthcare Insurance Professionals Inc., based in Houston, and the hiring of Dana R. Hando as its president.

Ms. Hando worked with Gallagher Healthcare Insurance Services Inc., later setting up an independent service firm, a spokesman from Brown & Brown said. Ms. Hando, Andrea Jones, and other members of the independent firm will provide insurance products and services to health care providers in Texas and throughout the U.S. The new unit is expected to generate revenues of about $1.4 million, the broker said.