Brown & Brown announced two acquisitions, one of which has lead to the opening of a new market for public entity professional liability insurance.
The Daytona Beach, Fla.-based insurance broker said Brown & Brown Public Entity Services, a managing general agency and program administrator, has acquired the Governmental Programs Division of U.S. Risk, L.P., of Dallas. No terms were announced.
Public Entity Services is a division of Program Management Services Inc., a subsidiary of Brown & Brown.
Joining Public Entity Services in the acquisition is Mark E. Dillard, lead underwriter, and his underwriting team. They will remain active on the acquired accounts.
Shane Caldwell, president of Public Entity Services, said the acquisition, with annualized revenue of $1.3 million, brought a total of six professionals over to Brown & Brown's operation, including Mr. Dillard.
Brown & Brown also announced it has acquired BeneTec Inc., headquartered in Rogers, Ark.
BeneTec, with annualized revenues of more than $500,000, is an agency specializing in serving the employee benefits needs of clients throughout the Ozark, Ark., region.
Brown & Brown said that the agency's principals, Robert B. and Cindy A. Broden, and staff will continue to serve clients from their current location as a branch operation of the broker's Arkansas subsidiary. Plans call for services at the current location to be expanded to include a full range of insurance services and products.
Concurrent with the U.S. Risk acquisition, the broker announced a nationwide program agreement with Bermuda-based insurer Arch Insurance Group. The program for management and placement of public entity professional liability insurance will be managed by Public Entity Services.
The program is designed to provide liability coverage for public officials, educators and law enforcement officers. The new program is available in all 50 states and will be managed by Mr. Dillard and his team.
Mr. Caldwell said that independent agents would primarily be interested in this new program because it addresses their dwindling access to this line of business.
"This is a new alternative for independent agents," Mr. Caldwell noted. "They are looking for a new market to address their public entity risks, but they should have confidence in this group of professionals with more than 20 years experience writing professional liability for public employees."
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