Business Moves

Royal & Sun

A state hearing officer recommended Delaware’s insurance commissioner approve the proposed management buyout and eventual dissolution of Royal and Sun Alliance Insurance Group’s U.S. operations. The subject of a lengthy hearing last month, the proposed buyout awaits Delaware Commissioner Matt Denn’s final decision.

Royal and Sun said it doesn’t consider its struggling U.S. business central to its main operations and stopped writing new policies hoping to eventually exit the U.S. market for the first in more than 150 years.

One of the U.S. subsidiaries, Royal Indemnity Co., which is incorporated in Delaware and manages Royal and Sun Alliance USA, was sued for more than $250 million by the developer of the World Trade Center site in New York City. Royal Indemnity and more than two-dozen other insurers took out policies with developer Larry Silverstein weeks before the towers collapsed. RSA USA is also involved in litigation over potentially costly asbestos and environmental claims.

Royal and Sun’s U.K. parent agreed to provide $287.5 million in financing for the buyout, but opponents contend that amount is insufficient to ensure obligations are met.

Widener University law professor Lawrence Hamermesh recommended Denn approve the buyout, over concerns raised by New York Sens. Hillary Clinton and Charles Schumer and New York City Mayor Michael Bloomberg who fear Royal Indemnity might not be able to meet its obligations, including helping to pay for the rebuilding of the World Trade Center site. Hamermesh said the deal meets all the requirements of Delaware law, and that there is no evidence that policyholders will be left holding the bag.

Western Maritime, Maritime Central

Stockton, Calif.-based Western Maritime Insurance Services is expanding into 13 states for 2007 through the newly formed entity, Maritime Central. Those states will include Arkansas, Illinois, Indiana, Iowa, Kentucky, Ohio, Oklahoma, Michigan, Minnesota, Missouri, Tennessee, Texas and Wisconsin. Maritime Central is looking to establish relationships with key brokers and agents in the expansion states. For information, visit www.westmaritime.com.

BISYS, Truckwriters

BISYS Commercial Insurance Services acquired Truckwriters Inc., an Atlanta-based managing general agency owned by and writing business with Zurich Programs. Truckwriters will become part of BISYS’ managing general agent operations, BISYS Specialty Programs.

Brown & Brown; Marcello, American Insurance and Beyer-Beeson

Brown and Brown acquired the assets of Marcello Agency Inc., American Insurance Service Inc. and Beyer-Beeson Insurance Agency Inc., of Lockport, La. The three companies with combined annualized revenues of approximately $2 million, are commercial property and casualty commercial insurance intermediaries that focus on the energy and marine services industries in Southern Louisiana and the Gulf Coast.