Two insurance industry veterans have announced the formation of Synercon Insurance Holdings, a new company they said is intended to "acquire and build a network of independent insurance agencies."
Synercon said that David D. Haynes, formerly of Synaxis Group, will serve as the company's chief executive officer, while Kenneth H. Pinkston, formerly of Willis Group Limited, will serve as chairman.
Mr. Haynes said the company is setting a target of $200 million in revenues within the next five years. The firm said it is not disclosing how much capital the concern has to work with.
"We had plans to do something in brokerage business again, and the more we analyzed other possibilities, we decided to do it our way and just form it together," said Mr. Haynes.
"By using a hub and spoke model, we will build an insurance broker focused on middle-market revenue with an intent to provide agencies that we acquire with greater access to capital, accelerate growth of business, and provide them with professional talent," Mr. Haynes continued.
The hub and spoke model works by developing geographic hubs through acquisition of regional insurance agencies.
Upon making an acquisition, Synercon management said it will assist hub leadership by obtaining producer teams and smaller agencies within the region, as well as technical resource professionals. According to the company, agencies will then work together to expand products and services and grow the regional client base.
Synercon is receiving capital from Primus Capital Funds, a private-equity firm in Cleveland, Ohio, that is committed to helping launch and develop it, said the company.
James Miley will serve as Synercon's senior vice president of administration.
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