Business Moves
Berkshire Hathaway, Iscar
Berkshire Hathaway completed the acquisition of 80 percent of Iscar Metalworking Companies. Berkshire announced in May that it would pay $4 billion for the stake in the privately held Israeli company, which makes metal cutting tools. The company’s current owners, the Wertheimer family, will retain 20 percent ownership, and the company will keep its current management and headquarters in Tefen, Israel. Iscar is the first business based outside the United States that Berkshire has bought into, although it owns several companies with overseas operations.
Berkshire, the Omaha investment firm run by billionaire Warren Buffett, owns a diverse mix of more than 60 companies, including insurance, furniture, carpet, jewelry, restaurants and utility firms. It also has major investments in such companies as H&R Block Inc., Anheuser-Busch Cos. and Coca-Cola Co.
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HCC, Novia
Houston-based HCC Insurance Holdings Inc. reached an agreement to acquire Indiana-based Novia Underwriters Inc. for an undisclosed consideration. The transaction is expected to close shortly. Currently writing $20 million in premium, Novia is an underwriting agency based in Indianapolis that specializes in medical stop loss insurance and has been in business since 1997.
Stephen L. Way, chairman and chief executive officer of HCC, stated, “Although small, the acquisition of Novia is an important step in growing our small case business and our overall medical stop loss line.”
According to HCC’s written statement, the company is a leader in the medical stop loss business and its subsidiaries HCC Life Insurance Company and Perico Life Insurance Company write more than $500 million of annual premium in this line. Following the acquisition, Novia’s business will be included in Perico Life.
HCC is an international insurance holding company and a specialty insurance group based in Houston, Texas.
Source: HCC Insurance Holdings Inc.
Hub, AssurConseil
Chicago-based Hub International Limited acquired AssurConseil, S.E.N.C., a Montreal-based insurance broker with both general lines and trucking expertise. The 39-employee organization will add approximately US$4.9 million to Hub International’s revenue base and will become part of Hub International Quebec Limitee (HUB Quebec). Terms of the transaction were not disclosed.
“AssurConseil and its management team are well known and highly respected in our service area, which makes this acquisition attractive on several levels,” stated Andre Soucisse, HUB Quebec president and CEO. “We look forward to working with our new partners to accelerate our expansion.”
All members of the AssurConseil Executive team will play important management roles in Hub Quebec. AssurConseil principals who will be joining HUB Quebec include Mr. Pierre Charron, Christian Chartier, Pierre Simoneau, Louis-Claude Trudel, Pierre Paquette and Robert Lorange.
“We will add new market access and product depth for AssurConseil clients as we become part of HUB Quebec, creating growth opportunities for our combined organization,” Charron commented.