Business Moves

USI, Universal American Agency

USI Holdings Corp. of Briarcliff Manor, N.Y., acquired a book of business from Universal American Insurance Agency Inc., which sells personal property and casualty coverages to home buying customers of one of the nation’s leading home builders. The book of business represents more than $6 million of annualized revenues for USI. It will become part of USI’s Affinity division, which markets insurance products to the membership and customer base of associations, trade groups and other sponsoring organizations.

Marsh & McLennan, Putnam

Marsh & McLennan Cos. is checking the market for a possible sale of its Boston-based mutual funds division, Putnam Investments. Marsh & McLennan also announced it would cut 750 jobs, consolidate some locations and revamp its information technology structure to cut costs. None of the cuts would affect Putnam, which employs more than 3,000, the parent company said.

Putnam, which was the first company accused of wrongdoing in a 2003 scandal over mutual fund market-timing practices that eventually enveloped much of the industry, has suffered a steady loss of funds since. In April 2004, Putnam agreed to a fine of $110 million to settle allegations by federal and Massachusetts regulators of allowing improper market timing, or rapid in-and-out trades by favored clients, hurting long-term shareholders. The following March, the company agreed to pay $83.5 million more to current and former fund shareholders to resolve the allegations.

Gallo Agency, Cove Agency

Gallo Insurance Agency, an Empire Insurance Holdings LLC company in West Palm Beach, Fla., acquired the individual policy business of Cove Insurance Agency in Palm Beach Gardens, Fla.

This acquisition strengthens Gallo’s presence in the south Florida market place and its access to the real estate and mortgage industries.

Gallo said it was attracted to Cove because of the agency’s work and relationships with real estate agents, developers and mortgage professionals. Cove’s personal line of insurance products also includes auto, boat and umbrella policies.

Privately held Empire Equity Group Inc., based in Montvale, N.J., operates under both the Empire Equity Group Inc. and 1st Metropolitan Mortgage brands.

Appalachian Underwriters, CRC Workers Comp Unit

Appalachian Underwriters Inc. of Clinton, Tenn., purchased the guaranteed cost workers’ compensation program of CRC Insurance Service, the wholesale insurance subsidiary of Branch Banking and Trust Company. The program mirrors that of Appalachian’s existing state and carrier footprint very closely, according to Bob Arowood, president and chief operating officer of AUI, based in Clinton, Tenn.

Appalachian Underwriters Inc., a managing general agency, provides independent agents a national wholesale outlet to markets for workers’ comp, commercial specialty and personal lines of insurance.