Business Moves
BB&T Insurance Services, Union Bank of California
Raleigh, N.C.-based BB&T Insurance Services reached an agreement with Union Bank of California North America to purchase its San Diego-based insurance subsidiary, UnionBanc Insurance Services Inc.
The acquisition would expand BB&T’s insurance operation in California, where wholesale insurance subsidiary CRC Insurance Services and large account commercial insurer McGriff, Seibels & Williams already operate. UnionBanc Insurance Services is expected to operate as a wholly owned BB&T insurance subsidiary after the acquisition is completed.
Martin Loth, who currently manages the McGriff, Seibels & Williams office in Irvine, Calif., would oversee the new West Coast subsidiary of BB&T Insurance Services.
When the acquisition is completed, BB&T plans to consolidate the California UnionBanc Insurance Services offices in San Rafael and Roseville into “BB&T-Tanner Insurance” in Pleasanton and Stockton. The company also plans to operate “BB&T Insurance Services of Orange County” in Fullerton and Irvine, “BB&T-John Burnham Insurance” in San Diego, and “BB&T-Knight Insurance” in Glendale. Additionally, the company plans to combine the Portland, Ore., office of UnionBanc Insurance Services with BB&T’s existing McGriff office there.
“We’ve made a decision to exit the insurance brokerage business in order to concentrate our efforts on enhancing other core fee-based lines of business, including wealth and asset management, institutional services, and capital markets-related activities,” said Johannes (Johs) Worsoe, a senior executive vice president with Union Bank and head of its Global & Wealth Markets Group.
The acquisition has been approved by the directors of BB&T Corp. and Union Bank holding company UnionBanCal Corp. The transaction is expected to be completed by the end of the second quarter, pending regulatory approval. Terms were not disclosed.
With 369 employees, UnionBanc Insurance Services operates offices in Pleasanton, San Rafael, Stockton and Roseville in Northern California; San Diego, Irvine, Fullerton and Glendale in Southern California; and Portland, Ore.
Union Bank entered the insurance brokerage business in 2001 with the acquisition of Fullerton, Calif.-based Armstrong/Robitaille Business and Insurance Services. The additions of 115-year-old John Burnham and Co. in 2002 and Pleasanton, Calif.-based Tanner Insurance Brokers in 2003 expanded the company’s footprint into San Diego and Northern California. In late 2003, Glendale, Calif.-based Knight Insurance Agency joined the company.
NSM Insurance Group, Insurex
NSM Insurance Group has acquired Insurex, a California-based workers’ compensation brokerage. The acquisition “immediately expands our ability to provide new national workers’ compensation markets to our independent agent and broker customers” said Dan McCarthy, CEO, Insurex. Meanwhile, NSM believes the acquisition will leverage its marketshare in the property/casualty marketplace on the West Coast, said Geof McKernan, CEO, NSM Insurance Group.
“We continue to aggressively seek program administrator or specialty underwriting acquisitions in the southeast and southwest states,” Geof added.
National Advantage, American Modern Insurance
Tustin, Calif.-based National Advantage Insurance Services Inc. added American Modern Insurance Co. as a new admitted carrier for personal lines.
American Modern Insurance Co., part of the Munich Re America Group, is an admitted carrier is rated “A+” IX by A.M. Best. Coverage includes liability and hull, physical damage or property for boats and personal watercraft; collector cars (antique, classic, custom, exotic, kit, street rod, etc); dwelling fire, DP-1 and DP-3; homeowners – specialty – HO 3; manufactured homes/mobile homes; motor homes and travel trailers and vacant dwellings, DP-1.
Direct bill or outside premium financing will be accepted. New brokers are welcome.
Hogan Insurance Services
Hogan Insurance Services Inc. of Thousand Oaks, Calif., expanded in Nevada with the opening of a new office in Henderson.
Donna Ferguson will lead Hogan’s expansion in the state.
Ferguson has more than 30 years of industry experience, having managed two agencies in the past.
Hogan focuses on commercial lines and benefits for all industry groups.
Zurich
Zurich North America Commercial said it will reduce approximately 400 positions or 4 percent of the staff that support its business division, primarily in non-market-facing roles.
Mike Foley, CEO of NAC, said the positions eliminated “were primarily non-market-facing roles to ensure our actions will not disrupt customer service.”
Meanwhile, Zurich Financial Services Group signed agreements to acquire a 50 percent stake in Spain’s Caixa d’Estalvis de Sabadell’s life and general insurance companies, CaixaSabadell Vida, S.A. de Seguros y Reaseguros and CaixaSabadell Companyia d’Assegurances Generals, S.A.
The purchase price is $360 million initially “plus an earn-out component of up to approximately $150 million depending on the future performance of CSV and CSG,” the company said. “As part of the agreements, CSV and CSG will enter into banc-assurance agreements with Caixa Sabadell Group to sell life insurance, pension and general insurance products through Caixa Sabadell’s branch network on an exclusive basis.”
Nationwide Insurance
Nationwide Insurance says it will cut 204 jobs at its Portland, Ore., offices in June.
According to a filing with the state, the mass layoff is part of Nationwide’s plans to eliminate certain departments.
Nationwide says it will remain an active employer in Portland, although it did not say how many employees will still be on hand.
Company spokesman Joe Case said that more than 300 agents will remain in the Portland area.
Safeco
The Seattle Mariners’ home field will continue to be called Safeco Field, despite Liberty Mutual Group’s agreement to buy Seattle-based Safeco. (See article about Liberty Mutual purchase in Insurance Journal’s national news.)
Safeco spokesman Dave Monfried said the insurance company will maintain a significant presence in Seattle and retain the ballpark’s naming rights.
Monfried said Safeco will retain its 85-year-old brand name and continue selling policies through its national network of agents and brokers.