Business Moves
Brown & Brown, Wright Insurance
Brown & Brown Inc. has completed its acquisition of specialty and flood insurance company The Wright Insurance Group LLC.
In January, Florida-based national insurance broker Brown & Brown said it would acquire TWIG for $602.5 million from Aquiline Capital Partners, Wright’s lead equity partner.
TWIG, with $114 million in revenues, is a fee-based specialty insurance services company that underwrites and administers property/casualty risks through three distinct segments: Wright Flood, program services servicing reciprocals and self-insured groups, and managing general agent services. It is the largest provider involved in the federal flood insurance program.
B&B has acquired 100 percent of the membership interests of TWIG and its subsidiaries, with the exception of WRM America Indemnity Co. of Uniondale, N.Y., which serves the education market.
TWIG subsidiaries acquired include: Wright Risk Management Co. LLC; Wright Specialty Insurance Agency LLC; Wright Risk Consulting LLC, Wright Program Management LLC, Wright National Flood Insurance Services LLC, and Wright National Flood Insurance Co.
Wright will become part of Brown & Brown’s National Programs Division.
The firms said in January that Wright’s current leadership team will remain in place and will continue to operate from offices in Uniondale and Albany, N.Y., and St. Petersburg, Fla.
The total net consideration paid for the ownership interests of Wright was $602.5 million. This amount is comprised of cash payments of $587.5 million for the program business, $7.5 million for Wright National Flood Insurance Co. (WNFIC) and $7.5 million for WNFIC statutory surplus, according to Brown & Brown.
Declaration Brokerage, RBLA of PA
Declaration Brokerage LLC, a Mahwah, N.J.-based insurance agency, has acquired the business of RBLA of PA, a Stroudsburg, Penn.-based agency that offers commercial and personal lines coverages.
Declaration Brokerage was formed last September with a growth strategy of acquiring Northeastern retail insurance brokers that focus on commercial lines accounts. Declaration Brokerage is sponsored by Capacity Coverage of New Jersey and Dowling Capital Partners, a private equity fund in Connecticut. The transaction involving RBLA of PA is Declaration Brokerage’s first acquisition since its formation last year.
RBLA of PA, which has been in business for 25 years, is owned and managed by John A. Martone, Jr. Under the deal, Martone will join Declaration Brokerage and manage new business efforts in Stroudsburg.
Declaration Brokerage’s Managing Director Carl Gerson said his firm believes market forces continue to encourage consolidation among smaller retail commercial lines agencies and that Declaration Brokerage is seeking to capitalize on those opportunities.
Medical Professional Mutual, Preferred Professional Insurance
Medical Professional Mutual Insurance Co. (ProMutual), a Coverys member company, has plans to acquire Preferred Professional Insurance Co. (PPIC), located in Omaha, Neb.
PPIC supports Catholic healthcare systems across the country by providing professional liability insurance, other casualty coverages, and an array of risk transfer products and services. Admitted to write insurance in all 50 states and the District of Columbia, PPIC insures over 8,000 healthcare providers nationwide.
The acquisition is subject to approval by a vote of PPIC shareholders scheduled for June 11, 2014, as well as approval by the Nebraska Department of Insurance and other customary conditions. Pending those approvals, the acquisition is expected to close during the third quarter of 2014.
Marsh & McLennan Agency, Visicor
Marsh & McLennan Agency LLC has acquired Visicor, an employee benefits brokerage and consulting firm based in Friendswood, Texas.
Terms of the deal were not disclosed.
All of Visicor’s leadership and employees will join MMA’s Southwest region and merge into MMA’s existing Houston office. Visicor provides employee benefits compliance, consulting, communication, and administration services to both public and private employers throughout Texas. The firm reports $1.5 million in annual revenue.
Marsh & McLennan Agency LLC, a subsidiary of Marsh, operates autonomously from Marsh to offer commercial property/casualty personal lines, and employee benefits to clients across the U.S.
Hilb Group, Newman & Crane
The Hilb Group of Richmond, Va., has acquired Newman Crane & Associates of Orlando, Fla. NCA will continue to operate at its current location under the leadership of Steve and Jamie Buckner.
Established in 1965, NCA sells personal and commercial insurance and benefits in the greater Orlando area.
NCA is The Hilb Group’s second acquisition in Florida in 2014. In January, it acquired Hockman Insurance Agency Inc. of Tampa.