Business Moves
USI Holdings
USI Holdings Corp. received an inquiry from a private equity firm interested in acquiring all of the outstanding common stock of the company. In response, the company’s board of directors formed a special committee consisting of outside directors to review the proposal and consider all of the company’s options.
Lazard Freres & Co. LLC and Dewey Ballantine LLP have been engaged by the special committee to assist in its review. No details were disclosed. USI said it could give no assurance that any transaction will be entered into or consummated.
Arch, Zurich
Arch Reinsurance Ltd. will open a branch office in Zurich, Switzerland, to focus on regional business that is complementary to the existing relationships of Arch Re in Bermuda and a strong emphasis on the broker market. Operating as Arch Reinsurance Ltd., Hamilton (Bermuda), European Branch Zurich, it will be headed by two new executives.
Source: Arch Capital Group Ltd.
AXA, Alpha Insurance
AXA reached an agreement with Alpha Bank to acquire its insurance subsidiary Alpha Insurance for $322 million.
AXA and Alpha Bank, Greece’s second largest bank, also signed a long-term exclusive agreement to pursue and strengthen the existing bancassurance partnership.
Completion of the acquisition is subject to regulatory approvals in Greece.
AXA Group has major operations in Western Europe, North America and the Asia/Pacific area.
Source: AXA
Protective Insurance, Paladin
Indianapolis-based Baldwin & Lyons Inc. announced that its subsidiary, Protective Insurance Company, entered into an agreement with newly formed Paladin Catastrophe Management to produce property catastrophe reinsurance in the United States.
Paladin Catastrophe Management will solicit and underwrite selected business on behalf of Protective. Its operations will be managed by David Ingrey from offices in Chester, N. J., and will be a broker market only, targeting regional catastrophe business in the U.S., other than Florida hurricane and California earthquake exposed business. It will also consider specific terrorism reinsurance, as well as property per risk and property aggregate stop loss programs.
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Affirmative Insurance, USAgencies
Affirmative Insurance Holdings Inc., Addison, Texas, and privately-held USAgencies L.L.C., based in Baton Rouge, La., announced a definitive agreement under which Affirmative will acquire 100 percent of the membership units of USAgencies, in a fully-financed all cash transaction valued at approximately $200 million.
The transaction is subject to regulatory approval and other closing conditions.
USAgencies is a privately-held non-standard automobile insurance provider headquartered in Baton Rouge. It has 92 sales offices in Louisiana, Illinois and Alabama. The retail stores in Louisiana will continue to operate under the USAgencies
brand.
In 2005, USAgencies had gross written premium of approximately $157 million.
Source: Affirmative Insurance Holdings