Business Moves
Synercon Insurance Holdings
In Nashville, Tenn., two insurance industry veterans have formed Synercon Insurance Holdings, a venture that will acquire and link leading independent insurance agencies.
David D. Haynes, serving as CEO of Synercon, is the founder and former chairman and CEO of Synaxis Group, the Nashville-based insurance broker.
Kenneth H. Pinkston, chairman of Synercon, is former chairman and CEO of the North American operations of London-based Willis Group Limited.
Synercon will utilize a hub and spoke business model to build a national insurance broker focused on middle market clients.
Primus Capital Funds, a Cleveland, Ohio-based private equity firm has committed to provide the capital.
James Miley, a 29-year insurance industry veteran, will serve as Synercon’s senior vice president of administration. Miley was previously vice president of compliance for Willis North America.
AIG, Liberty Mutual
American International Group Inc. and Liberty Mutual Group have each been been granted approval by the China Insurance Regulatory Commission (CIRC) to establish a wholly owned subsidiary in China.
AIG said that its subsidiary, AIU Insurance Co. (AIU), has been granted the approval. The new subsidiary, or Wholly Owned Foreign Enterprise, will be named AIG General Insurance Co. China, Ltd. (AIG General).
In accordance with CIRC and other government requirements, AIG General will be headquartered in Shanghai, and the existing AIU branches in Shanghai, Guangdong and Shenzhen will be consolidated into it.
Liberty Mutual Group said its China subsidiary will be called Liberty Insurance Co., Ltd., and will be headquartered in the city of Chongqing, where the company has had an office since 2003.
AIG said that the subsidiary license and subsequent branch conversion will permit AIG General to expand its general insurance capabilities, achieve operational and capital efficiencies, and, with regulatory approval, provide a platform to establish new branches in other areas of China over time.
“The license is a significant milestone for AIG and further strengthens our commitment to China,” commented AIG President and CEO Martin J. Sullivan. “As the world’s fastest growing economy, China continues to present great potential for AIG. We look forward to contributing to the economic growth and success of this market where AIG has had a long history, dating back to 1919, and where it became the first foreign insurance organization to receive a license to operate in 1992.”
Liberty Mutual said the license would allow it to expand its general insurance capabilities, including coverage for individuals and small and medium size businesses.
“A company can’t view itself as truly international without a strategy for conducting business in China,” said Edmund F. Kelly, Liberty Mutual Group chairman, president and CEO.”
Liberty Mutual has had a presence in China since 1996 when it opened in Shanghai.
Hilb Rogal & Hobbs, The Resource Group
Richmond, Va.-based insurance broker Hilb Rogal & Hobbs Co. is acquiring The Resource Group, L.C. Terms of the transaction were not disclosed.
TRG, with more than $5.1 million of revenue in 2006, is an employee benefits brokerage and consulting firm with specialties including group health insurance, ancillary benefits, retirement programs, executive insurance and financial services.
TRG’s staff of 37 professionals will continue from the office in Overland Park, Kansas, joining HRH’s Central Region under the leadership of Central Regional Director William L. Chaufty.
Argonaut, PXRE
Argonaut Group Inc. reported that its shareholders voted to approve the previously announced merger agreement between Argonaut Group and a wholly owned subsidiary of PXRE Group Ltd.
The combined entity will do business as Argo Group International Holdings, Ltd. Argo Group will become the Bermuda holding company for PXRE Group’s existing insurance and other subsidiaries, including its newly formed Bermuda reinsurer Peleus Reinsurance Ltd. and Argonaut Group’s existing operations.
Argo Group will trade on the NASDAQ Global Select Market under Argonaut Group, Inc.’s existing ticker symbol, AGII.
Headquartered in San Antonio, Argonaut Group, Inc. is a national underwriter of specialty insurance products in niche areas of the property and casualty market, with $3.8 billion in assets.