Business Moves
Marsh, Crump Group
Marsh & McLennan Cos., the world’s largest insurance broker, has agreed to sell the Crump Group Inc. wholesale brokerage business of its Marsh Inc. unit to an affiliate of J.C. Flowers & Co., a New York-based private equity firm. The transaction is subject to normal and customary closing conditions.
In May, Marsh & McLennan began to explore alternatives for its wholesale broking operations, which includes Crump in Dallas and Price Forbes in London. Marsh has nearly 30,000 employees and annual revenues exceeding $5 billion.
Banc of America Securities LLC acted as financial advisor to Marsh, and Lazard acted as financial advisor to J.C. Flowers & Co.
Brown & Brown, Nichols Agency
Nichols & Associates of Philadelphia, Pa., has been acquired by Brown & Brown of Tampa and Daytona Beach, Fla., according a joint announcement by Thomas E. Riley, regional president of Brown & Brown Inc. and Val E. Nichols, president of Nichols & Associates.
Nichols & Associates has annualized revenues of approximately $1.2 million. It is a retail insurance agency that specializes in placing coverage for large health care institutions and physician groups, including medical malpractice coverage. Nichols and his team will continue to operate from their current location as a new freestanding Brown & Brown profit center.
XL Capital, Argonaut Risk Management
XL America Inc., the holding company for XL Capital Ltd’s U.S. operations, has agreed to acquire the renewal rights to the San Antonio, Texas-based Argonaut Group’s risk management book of business in the U.S. Terms of the transaction were not disclosed.
XL America will offer quotes to selected Argonaut clients beginning immediately. In addition, during renewal, XL America will offer continued access to the specialized claims management and loss control services provided by Argonaut Claims Services Ltd.
XL America Executive Vice President Dennis Kane said that the addition of these customers fits well with XL America’s growth strategy in the U.S. casualty market, particularly on the West Coast.
NASDAQ, Carpenter Moore
The Nasdaq Stock Market Inc. has agreed to acquire Carpenter Moore Insurance Services Inc., a privately held, San Francisco-based insurance brokerage firm specializing in management liability. NASDAQ’s is acquiring four locations, including San Francisco, Texas, Minnesota and Massachusetts. The Connecticut and New Jersey operations are being spun off separately.
As a result of this transaction, NASDAQ said its insurance business would be ranked as a top 10 provider of management liability insurance. NASDAQ’s insurance business, including the Carpenter Moore acquisition and the existing Nasdaq Insurance Agency, will operate under the leadership of Susan Miner. Currently executive vice president of Carpenter Moore, Miner will assume the title of president for the combined entity.
AIG Programs, Distinguished Programs
AIG Programs, a member company of American International Group Inc., has appointed The Distinguished Programs Group in New York as program administrator for its Property Owners Program, which is available nationwide for a range of real estate classes, including habitational and commercial properties. Property limits up to $50 million are offered, with flood and earthquake covered on a sub-limited basis.