Business Moves
Aon, Smooth WTW
Global insurance broker Aon has agreed to sell its U.S. retirement business to private investment firm Aquiline and its Retiree Health Exchange individual health insurance business to Illinois-based digital services firm Alight for total gross consideration of $1.4 billion.
Aon said the sales are intended to address certain questions raised by the U.S. Department of Justice with respect to Aon’s proposed $30 billion takeover of rival Willis Towers Watson, creating the world’s largest insurance broker.
Aon and Willis Towers Watson said they continue to work toward completing the proposed merger as soon as possible in the third quarter of 2021.
Aon and Willis Towers Watson have previously announced the divestiture of Willis Re, a set of Willis Towers Watson corporate risk and broking and health and benefits services to rival Arthur J. Gallagher, and Aon’s retirement and investment business in Germany. Total 2020 revenue announced or offered to be divested, contingent on the combination, is $2.3 billion. Of the $2.3 billion, approximately 35% occurred in Q1, 23% in Q2, 18% in Q3, and 24% in Q4.
The U.S. retirement business Aquiline will acquire includes approximately 1,000 colleagues and the agreement includes U.S. core retirement consulting, U.S. pension administration and the U.S.-based portion of Aon’s international retirement consulting business, along with many solutions and tools, including: Benefit Index and SpecSelect; Risk Analyzer; DBCalc and YPR; and Aon Pooled Employer Plan (PEP).
The agreement with Aquiline does not include Aon’s non-U.S. actuarial, non-U.S. pension administration or international retirement businesses based outside of the U.S. Aquiline Capital Partners invests in companies across financial services, technology, business services and healthcare.
The Aon Retiree Health Exchange, which Alight will acquire, is an individual market platform for employers and their retirees.
All of the announced regulatory divestitures are contingent on the completion of the pending Aon and Willis Towers Watson merger, as well as other customary closing conditions.
Allstate, SafeAuto
Allstate has agreed to acquire Ohio-based SafeAuto, which offers car insurance that meets the minimum legal requirements in 28 states.
The acquisition will be through Allstate subsidiary National General, and SafeAuto will be integrated into National General’s direct-to-consumer non-standard auto insurance operations.
Total consideration includes a $270 million cash purchase price plus approximately $30 million in pre-close dividends of certain non-insurance assets.
Allstate closed on its $4 billion acquisition of National General in early January.
SafeAuto offers direct-to-consumer sales and customer contact centers through 1-800-SafeAuto and its website.
Ari Deshe, co-founder and chairman of SafeAuto, said that combining forces with National General with the backing of Allstate will allow SafeAuto to grow its platform in the non-standard space.
The insurer, which was launched by Deshe and Jon Diamond 27 years ago, reported $378 million in eared premium and a 95.3 combined ratio in 2018.
SafeAuto has twice announced plans for an initial public offering — in 2004 and again in 2019 — but later withdrew both proposals, according to filings with the Securities and Exchange Commission.
The transaction is expected to close by the end of the third quarter of 2021.
NFP, The Schuster Group
NFP, an insurance broker and consultant that provides property/casualty, corporate benefits, retirement and individual products and services, has acquired Schuster Driscoll LLC, d/b/a The Schuster Group, and its nonprofit membership platform, TANGO Administrative and Management Services LLC (together, TSG).
TSG, located in Farmington, Connecticut, with ancillary sales offices in Rhode Island and Massachusetts, is a multidisciplinary insurance broker and consultant focused on employee benefits. The firm also offers capabilities in retirement advisory services.
NFP’s acquisition of TSG brings expertise in the nonprofit space that will be integrated into NFP’s existing benefits offerings and resources to enhance insurance solutions to nonprofit clients. Firm Principal Rollin Schuster will join NFP as a managing director and report to Kate Henry, a regional managing director in NFP’s Northeast region.
The Hilb Group, Parallel Risk Advisors
The Hilb Group LLC has acquired Maryland-based Parallel Risk Advisors LLC. (PRA).
PRA is a commercial lines property/casualty consulting and advisory firm specializing in the commercial real estate industry. As part of the transaction, the Principals Debbie Dorsch, Jessica Gray and Eileen Hartzell and their associates will join THG’s Mid-Atlantic region.
THG is a property/casualty and employee benefits insurance brokerage and advisory firm based in Richmond, Virginia.
Hub International Limited, IBG Financial Partners
Hub International Limited, a full-service global insurance broker, has acquired IBG Financial Partners LLC.
Located in Foxborough, Massachusetts, IBG is a team of retirement plan consultants that provides fiduciary and retirement plan consulting services to plan sponsor clients. It provides advisory support in the areas of investment, plan design and administration, while helping clients support their employees toward a meaningful retirement. IBG manages approximately $1.6 billion in assets as of Dec. 31, 2020.
IBG Principal Peter Vacheron and the IBG team will join Hub Retirement and Private Wealth (Hub RPW) in New England. This move continues to strengthen Hub’s retirement and wealth management services, according to a Hub press release.
Alera Group, The Waterford Group
Alera Group, a financial services and risk management company, has acquired The Waterford Group, a Rochester, New York-based retirement plan specialist providing consulting and fiduciary services to companies.
Following the acquisition, The Waterford Group team will continue serving clients in their existing roles.
The Waterford Group provides 3(38) fiduciary and educational services to employer-sponsored retirement plans and wealth management services.
Alera Group is a financial services and risk management company with more than $500 million in annual revenue offering employee benefits, property/casualty, retirement services and wealth management solutions to clients nationwide.
Scottish American, Fastcomp
Wholesale insurance broker and managing general agent, Scottish American, has acquired Fastcomp of Boston Heights, Ohio.
Fastcomp was created in 1998 by an experienced team of insurance underwriting professionals to provide independent agents with the opportunity to unbundle and place monoline workers’ compensation coverage profitably.
Giordano, Halleran & Ciesla provided legal counsel to Scottish American.
Alvarez & Marsal provided financial diligence, and Filament AI provided technological diligence.
Stark & Knoll Co. provided legal counsel to Fastcomp and MarshBerry advised them on the transaction.
No other advisors, diligence firms or legal counsel were disclosed.
Arthur J. Gallagher, LDJ American Online Benefits Group
Arthur J. Gallagher & Co. has acquired Addison, Texas-based LDJ American Online Benefits Group LLC.
Founded in 2013, AOBG designs, markets and services supplemental health insurance and wellness products, including short-term medical, hospital indemnity, AD&D, vision care and a wellness program, through more than 2,500 independent agents across the U.S.
Ronnie Dee Hohenberger and his associates will continue to operate from their current location under the direction of Kevin Garvin, head of Gallagher’s North American Affinity operations.
Arthur J. Gallagher & Co. is headquartered in Rolling Meadows, Illinois.
AssuredPartners, Anchor Pardue Insurance
AssuredPartners Inc. has acquired Anchor Pardue Insurance Inc. of Mountain Brook, Alabama.
Anchor Pardue was AssuredPartners’ second acquisition in May and 18th acquisition in 2021.
The team will remain under the leadership of President Richard Pardue and CEO Lisa Worley.
AssuredPartners Regional President Jack Suber said the move is part of its strategic growth in the region.
Headquartered in Lake Mary, Florida, AssuredPartners is an insurance broker providing commercial insurance, risk management, employee benefits and personal lines through consulting and services.
It has more than 8,000 employees located in offices throughout North America, London, Belgium and Scotland.
Newfront, Aviation Marine Insurance
Newfront Insurance has acquired Aviation Marine Insurance Services in Sausalito, California.
AMIS is led by Scott Gault, who joins Newfront along with his team of aviation insurance experts.
AMIS is a specialist brokerage focused across general aviation from individual owners, managed fleets, charter companies, to aviation related business in 35 states.
Newfront is a tech-enabled brokerage based in San Francisco, Calif.
InterWest, Aegis
InterWest Insurance Services LLC has opened a new office in Reno, Nevada, and has acquired Aegis Insurance Markets in Truckee, California.
Tony Commendatore, founder of AEGIS, will continue in his leadership role.
InterWest is an insurance brokerage providing commercial, employee benefits, surety and personal insurance solutions.
Hub, EnterMedicare
Hub International Ltd. has acquired the assets of EnterMedicare Inc. in Los Angeles, California.
Dennis Negron, founder and CEO of EnterMedicare, and the EnterMedicare team will join HUB’s national employee benefits practice.
Chicago, Illinois-based Hub is a global insurance broker providing risk management, insurance, employee benefits, retirement and wealth management products and services.