German-based insurer Munich Re said it has acquired the Roanoke Companies Inc., the holding company of Roanoke Trade Services Inc., a major marine insurance underwriting agency and broker in the United States for $52.5 million. Terms of the deal were not released.
Roanoke was established in Chicago in 1935 and operates as an underwriting manager and broker of marine business. With around 180 employees, the company is represented by 11 branches in nine U.S. states and is licensed in 50 states. Its head office is in Schaumburg, Ill.
In 2007, its income from fees totaled $22 million. The premium volume it placed as a broker came to approximately $100 million. Its stock is held by the management and employees of the company.
While writing business for the companies in the Munich Re Group, Roanoke will continue to trade with other insurance entities in the United States as an underwriting agency and broker, providing business insurance products to the global trade and transportation industry.
Roanoke will report to Mark Watkins, chief executive officer of Munich Re Holding Company (U.K.) Limited, who also manages the Watkins Syndicate and related service companies.
The Watkins Syndicate is already represented in Europe, Asia and the Middle East and the acquisition expands its network into the United States, Munich Re said. With Roanoke, the Watkins Syndicate will acquire access to American marine business through its own network and further diversify its portfolio, the company noted.
The Watkins Syndicate is a major marine syndicate at Lloyd's of London and a primary insurer of international marine business. The syndicate has offices throughout the United Kingdom as well as Ireland, Hong Kong, Singapore and Dubai.
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