Business Moves
Hiscox, Bermuda Holding Company
London’s Hiscox plc outlined its corporate reorganization plan. A new Bermudan domiciled holding company for the Group, Hiscox Ltd., has been established. Shareholders of Hiscox will receive one share in Hiscox Ltd. for each share held in Hiscox. Application will be made for Hiscox Ltd. to be listed on the London Stock Exchange and it is expected to replace Hiscox as a member of the FTSE 250 Index. Shares in Hiscox Ltd. will be tradable in CREST through depository interests. It is not expected that Hiscox’s existing dividend policy will be affected and shareholders will have the right to elect to receive UK sourced dividends. The corporate reorganization is expected to be neutral in tax terms for UK resident shareholders. Finally, Hiscox Ltd. will report consolidated results under IFRS in sterling.
Hiscox said its strategy is to build the Hiscox group of companies on the complementary foundations of internationally traded insurance and reinsurance business, balanced by local retail insurance business.
In 2005, Hiscox formed Hiscox Bermuda as a reinsurer and also established Hiscox USA in New York as the base through which the group underwrites and distributes specialist products in the USA. These developments recognized that Hiscox needed to have operations on the ground in the U.S. where the non-life markets are considered to be the largest in the world, and in Bermuda, which had become one of the major reinsurance centers.
In addition, a significant proportion of the business that is written in Hiscox Global Markets emanates from the USA. U.S. business accounted for 36.3 percent of the group’s gross earned premiums in 2005. With the formation of Hiscox Bermuda and Hiscox USA, the amount of U.S. and Bermudan originated business is expected to increase significantly.
Euclid Insurance, Environmental Insurance Specialists
Itasca, Ill.-based Euclid Insurance Services announced plans to acquire Melbourne, Florida-based Environmental Insurance Specialists, a commercial insurance agency that specializes in serving the waste hauling and transportation industries.
As part of the merger, Environmental Insurance Specialists’ Paul Zizzo will join the Euclid team and serve as Environmental’s managing principal.
According to the company’s written statement, the acquisition further strengthens Euclid’s Midwest presence in the solid waste industry and transportation insurance sector while leveraging Environmental Insurance Specialists’ Southeast regional dominance in both industry classes. Environmental Insurance Specialists will continue to operate under its current name but now as a division of Euclid Insurance Agencies, LLC, a subsidiary of Euclid Insurance Services Inc.
BB&T Insurance, Wyman, Green & Blalcok
BB&T Insurance Services plans to expand its Florida operation with the acquisition of Wyman, Green & Blalock Inc. of Bradenton. Founded in 1908, Wyman, Green & Blalock specializes in personal and commercial property insurance, liability risk management and employee benefits. The transaction should be completed in early December. Terms were not disclosed.
The agency will keep its staff and continue to operate from its offices in Bradenton and Lakewood Ranch, Fla., as BB&T-Wyman, Green & Blalock.
BB&T Insurance Services already operates Florida agencies BB&T-Landrum Yaeger in Tallahassee and BB&T-Iler, Wall & Shonter in St. Petersburg and Orlando.
Wyman, Green & Blalock President Greg Bustle and Vice President Corky Taylor will continue to manage business development and client relationships while Chief Operating Officer John Laurie will serve as agency manager.
BB&T Insurance Services is a wholly owned subsidiary of Branch Banking and Trust Company. Founded in 1922, it operates 81 insurance agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida, Kentucky and Alabama.
Branch Banking and Trust Company is the principal subsidiary of Winston-Salem N.C.-based BB&T Corp.
North American Group, CIC Insurance Brokers and CTK Insurance Services
North American Group, headquartered in Oklahoma City, Okla., announced it acquired Abilene, Texas-based CIC Insurance Brokers Inc., and Anaheim, Calif.-based CTK Insurance Services Inc.
CTK is a retail insurance agency focused primarily in the Western U.S. while CIC is a program administrator who delivers their products through independent insurance agencies nationwide. Mystic Capital Advisors Group LLC represented both sellers.
Combined with their existing retail, wholesale and program insurance offices in Oklahoma, Texas and Oregon, the asset acquisition strengthens North American Group’s position as one of the country’s leading providers of insurance and risk management services.
With over $4 million in combined revenue, the CTK and CIC acquisitions accelerate the growth of North American Group, whose total revenue now approaches $40 million annually.