Business Moves

Key & Piskuran, Higginbotham

Key & Piskuran Insurance Agency LLC, a commercial P/C insurance broker in Arlington, Texas, joined forces with Higginbotham & Associates, a Ft. Worth-based insurance and financial services broker with statewide operations.

Key & Piskuran Partner Carrol Key founded a property/casualty insurance agency in 1983, and Bill Piskuran joined him shortly thereafter to form Key & Piskuran. Larry Gallemore was made a partner in 2004. The firm employs a staff of six and specializes in risk management services to commercial entities. Its practice is grounded in the public sector, serving Texas municipalities and school districts.

Higginbotham is aggressively expanding its operations in Texas by aligning with insurance firms that have strong footholds in their local markets or niche practices. In addition to Key & Piskuran, Higginbotham has expanded into Houston, Wichita Falls, Henri-etta, Granbury and Waco via partner firms within the past 15 months. Higginbotham has provided broad commercial and personal insurance and financial services since 1948.

Gibraltar Group, Sitkins

The Gibraltar Group, headquartered in Lubbock, Texas, announced it was selected to become a part of Sitkins International, an organization whose membership includes independent insurance agencies and brokerages in the United States, Canada and Latin America.

Through membership in the organization, The Gibraltar Group executives, as well as its sales, service and active risk management teams, gain access to a range of intellectual capital and resources provided by Sitkins Group Inc., a consulting company that delivers solutions and support for the 132 insurance firms that make up Sitkins International.

A highlighted benefit offered to members is The Vertical Growth Experience, a series of training, coaching and networking services and programs that positions agencies and brokerages to increase top-line revenues and bottom-line profits by 15 percent to 25 percent or more per year.

Sitkins International membership status is awarded to a limited number of firms across the Western Hemisphere, maintaining territorial exclusivity with a limit of one agency or brokerage per marketing area.

Farmers, AIG, 21st Century

Los Angeles-based Farmers Insurance Group of Companies is acquiring American International Group’s (AIG’s) Personal Auto Group, which includes 21st Century Insurance Co. The transaction excludes AIG’s Private Client Group, which provides P/C insurance to high net worth individuals.

Under the agreement, 21st Century Insurance Group, the wholly owned subsidiaries comprising AIG’s U.S. personal auto insurance business, will be sold to Farmers Group Inc., a subsidiary of Zurich Financial Services Group. Farmers Group Inc. will sell the underlying insurance entities to the Farmers Exchanges, which Farmers Group Inc. manages, but does not own.

FGI will pay AIG $1.9 billion, consisting of $1.5 billion in cash and $400 million in face amount of subordinated, euro-denominated capital notes backed by Zurich Insurance Co., Zurich’s principal operating unit. FGI also assumes 21st Century’s outstanding debt of $100 million. The acquisition is expected to close no later than by the third quarter of 2009.

This acquisition by the Farmers Exchanges will position Farmers as the third-largest overall, personal lines insurer in the United States, according to the company’s most current insurance industry data.

21st Century, which includes the former AIG Direct business and Agency Auto business, operates in 49 states and Washington, D.C. 21st Century has more than 2.4 million customers and insures more than 4 million vehicles across the country. 21st Century is the third largest traditional direct writer of insurance in the United States.

Farmers CEO Robert Woudstra described the acquisition as a “win, win, win, win” for Farmers, 21st Century, Farmers agents, and most importantly, insurance consumers across the United States.

Woudstra said Farmers’ national network of insurance agents will benefit from the proposed acquisition by gaining additional multi-line product sales opportunities from 21st Century customers.