Business Moves
Alleghany, Transatlantic
Global specialty insurer Alleghany Corporation completed its previously announced acquisition of reinsurer Transatlantic Holdings. Both companies are headquartered in New York. With the deal’s closing, Transatlantic is now a stand-alone subsidiary of Alleghany.
The cash-and-stock deal, which was first announced on Nov. 20, 2011, is valued at around $3.4 billion. The merger puts to an end months-long takeover talks involving Transatlantic.
Marsh & McLennan Agency, KSPH
Marsh & McLennan Agency, a unit of March Inc., acquired KSPH, a $5 million revenue employee benefits agency in Glen Allen, Va. Launched in 2000, KSPH offers employee benefits and retirement plan services to middle market clients in Virginia. KSPH will operate within Rutherfoord, a Marsh & McLennan Agency company.
The deal further expands Rutherfoord’s Richmond, Va., market position and adds to its employee benefit capabilities.
Navigators Management Company
Navigators Management Company launched a new operating unit that will work exclusively with wholesale brokers in the United States.
The unit will be called Navigators Specialty. The New York-based Navigators Management Company is part of The Navigators Group, an international specialty insurance holding company.
USI, Euclid Insurance
USI Insurance Services acquired retail P/C and employee benefits units from Illinois-based Euclid Insurance Services Inc.
USI is an insurance brokerage and financial service firm in Briarcliff Manor, N.Y. The acquisition is expected to contribute some $7.3 million in revenues to USI on an annual basis.
Euclid Insurance Services is retaining their health and life general agency business and their commercial managing general agency program businesses.
The acquired retail P/C and employee benefits units, referred to as Euclid Retail Business, specializes in commercial P/C and employee benefits insurance for middle-market companies and personal lines insurance for individuals throughout the Mid-West.
USI has been active in acquiring new businesses. Last month, USI announced it acquired assets of The Pinnacle Group, a Virginia Beach, Va.-based employee benefits consulting firm. Founded in 1994, USI is a distributor of property/casualty and employee benefits products to businesses throughout the country. USI operates out of 80 offices in 23 states.
Aon Affinity, Access Plans
Aon Affinity, the consumer, association and group program business of Aon Risk Solutions, is acquiring Access Plans, a marketing firm specializing in turnkey, private-label membership benefit plans that provide discount products and services, protection benefits and retail services to more than one million customers.
Under the deal, Aon Affinity will acquire outstanding shares of and options to acquire Access Plans common stock for $70.1 million in cash. Access Plans is the nation’s largest membership plan provider in the specialty rent-to-own market space. As a part of Aon Affinity, Access Plans is expected to add $18 million of revenue to Aon. Aon Affinity provides custom insurance and risk management programs to more than 200 associations and corporations, serving 16.5 million individual customers.
AIG, Blackstone
American International Group Inc. sold its entire $500 million stake in private equity firm Blackstone Group LP, according to media reports. The sale is part of AIG’s continuing effort to divest non-core assets, reduce risk and deleverage.
Goldman Sachs, Ariel Re
Goldman Sachs Group in New York said it is acquiring Ariel Reinsurance’s Bermuda-based insurance and reinsurance operations, which it will combine with its existing business underwritten through Lloyd’s Syndicate 1910.
The acquired business will operate as part of Goldman Sachs Reinsurance Group, under the brand name of Ariel Reinsurance. Ariel Re’s existing business will be reinsured by GSRG’s Lloyd’s syndicate. This transaction does not include Ariel’s credit and surety business run through its Zurich branch office nor its Atrium Underwriting Group at Lloyd’s.
Encharter Insurance
Encharter Insurance, an independent agency with several offices in Massachusetts and Connecticut, opened a new insurance office in Cheshire, Conn.
The new Cheshire office is the fourth Connecticut location for the agency. The agency has three Massachusetts offices, located at Amherst, Reading and Lexington, as well as four Connecticut offices, at Watertown, Simsbury, Farmington and Cheshire.