Business Moves
Liberty Mutual, State Auto
Liberty Mutual Insurance has completed the all-cash deal of about $1 billion for super-regional insurer State Auto Group. The transaction was originally announced in July 2021. Now that it gained all required regulatory approvals, Liberty Mutual said it adds $2.3 billion in premiums and becomes the second-largest carrier in the independent agent channel with State Auto’s network of about 3,400 independent agencies across 33 states distributing personal and small commercial insurance.
More than 2,000 State Auto employees will join Liberty Mutual’s Global Retail Markets US business unit. The companies will continue to operate as separate businesses throughout most of 2022.
Kim Garland was appointed president of State Auto. Garland was senior vice president of personal and commercial lines at State Auto and managing director of State Auto Labs, a part of the insurer that connected startups with capital, technologists and insurance industry experts.
Mike LaRocco’s contract as State Auto president and CEO was extended in July 2020 and runs through 2022.
Under the terms of the agreement, State Auto mutual members became members of Liberty Mutual. Also, Liberty Mutual will acquire all the publicly held shares of common stock of State Auto Financial for $52 per share in a cash deal of about $1 billion.
Liberty Mutual acquired specialty insurer Ironshore in 2017 and Safeco in 2008.
Hub, Bold Penguin, Insureon
Hub International Ltd. and insurtech Bold Penguin have agreed to acquire digital agency Insureon Holdings.
Chicago-based Insureon calls itself the top independent marketplace for online delivery of small-business insurance.
Pending the closings of two separate transactions, Hub, also based in Chicago, will acquire the Insureon digital insurance agency and brand. Bold Penguin will acquire the Insureon technology platform. Hub will then enter into an enterprise agreement with Columbus, Ohio-based Bold Penguin to license Insureon’s technology platform.
Jeff Kroeger, chief commercial officer at Insureon, will join Hub along with the digital agency and front-end ecommerce technology and product teams. Last year during a podcast, Kroeger told Insurance Journal that the market size for online sales of small business could grow to $12 billion by the end of 2025.
At Hub, the Insureon operations will be part of Hub holding company Specialty Program Group. The team will report to SPG CEO Chris Treanor.
Bold Penguin, a subsidiary of American Family Insurance, will acquire Insureon’s cloud-based technology platform with 24/7 monitoring and flexible API integration to connect to carriers. Bold Penguin will continue to serve Insureon’s enterprise software and SaaS clients, expanding Bold Penguin’s depth of products, carriers, and clients. Insureon’s platform technology, carrier integration and enterprise/SaaS teams will join Bold Penguin.
Hub provides risk management, insurance, employee benefits, retirement and wealth management products and services.
Keystone, Strategic Insurance Partners
The Pennsylvania-based insurance brokerage platform Keystone Agency Partners (KAP), added Strategic Insurance Partners, an independent insurance agency based in Nutley, New Jersey, to its network.
Founded in 1900, SIP is licensed to sell insurance in 30 states with the majority of its business centered in New Jersey, New York, Connecticut, Pennsylvania and Delaware. Commercial lines is the largest business line with a focus in the construction, professional services and municipality sectors. The company specializes in servicing Hispanic business owners, with more than half of SIP’s employees being bilingual, according to the announcement.
SIP will retain its two offices in Nutley and North Bergen, New Jersey, and a third office in Camden, Delaware.
Eastern Insurance, Michals Agency
Natick, Massachusetts-based Eastern Insurance Group acquired the operating assets of Michals Insurance Agency, an insurance agency in nearby Watertown.
Since 1993, Michals Insurance has served both individuals and businesses, and has developed a specialty focused on the national fine arts sector.
Bradly Michals, president of Michals Insurance, said he and his family will be joining the Eastern Insurance family.
Element Risk Management, Ross Insurance
Element Risk Management acquired Ross Insurance, a personal and commercial lines agency in Lancaster, Pennsylvania.
Ross Insurance was founded in 1960 by Bill Ross Sr. and Sondra Ross. Brothers Richhi Ross and Bill Ross Jr. have grown the agency to serve more than 7,000 clients in Lancaster County and surrounding areas. Richhi Ross retired in 2018. Bill Ross and his staff will continue to serve clients from their office located in Lancaster.
Earlier this year, Element Risk Management acquired two other Pennsylvania insurance agencies and another in Virginia,
The Pennsylvania agencies are W.S. Hoffman Insurance located in Phoenixville, and L&B Insurance and Financial Services, located in Collegeville. Element Risk also acquired Stoneburner-Carter Insurance, located in Front Royal, Virginia. Element Risk now has 17 locations across Pennsylvania, Virginia and Maryland.
Hub, Kuhl Insurance Agency
Hub International Ltd. acquired the assets of Kuhl Insurance Agency Inc.
Located in Morton, Illinois, Kuhl Insurance is an independent agency providing commercial and personal insurance, and employee benefits services. Kuhl Insurance specializes in the manufacturing, healthcare, social services and construction industries.
Mike Kuhl, president of Kuhl Insurance, and the Kuhl Insurance team will join Hub Midwest West.
Chicago-based Hub is an insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services.
Brown & Brown, CrossCover
Brown & Brown Inc. has entered into an agreement to acquire CrossCover Insurance Services.
The transaction is expected to close before April 2022, subject to certain closing conditions.
CrossCover provides E&S commercial property solutions for customers across the U.S.
CrossCover will continue to operate under the direction of Scott Hanson from offices in Cypress, Texas.
Openly
Openly, a data-focused homeowners insurer based in Boston, has expanded into Georgia. It now operates in 17 states.
Founded by insurance industry veterans Ty Harris and Matt Wielbut, Openly said it uses data and technology to offer a new approach to home insurance. The firm also said it is recruiting for remote positions.
Liberty, Strategic
The Liberty Company Insurance Brokers added a Clearwater, Florida, firm to its network.
Strategic Insurance Services is led by CEO Doug Levi. It specializes in business, property, home, auto, health and life insurance services.
Liberty notes that it provides producers and agency leaders a platform to serve clients and create equity. Liberty has offices in California.
Hub, Taylor
Global insurance brokerage Hub International acquired Kentucky-based Taylor Advisors, a financial consulting and investment firm.
Taylor has offices in Louisville. Todd Taylor is principal and Sasha Antskaitis is managing partner. They will now be part of the Hub Financial Services team.
Chicago-based Hub provides risk management, insurance, employee benefits, retirement and wealth management products and services.
Cadence
Cadence Bank, a commercial bank headquartered in Tupelo, Mississippi, merged two of its own subsidiaries, BXS Insurance and Altera Payroll & Insurance. The merger will provide customers with a wider range of financial, human resource and insurance services, the company said.
Cadence Bank was formerly known as Bankcorp South, and now has offices in 10 states.
BXSI is the second-largest bank-owned insurance broker in the U.S., according to the merger announcement.
Hub, Niedermeyer Risk Management
Hub International Ltd. acquired the assets of Niedermeyer Risk Management LLC in Beaverton, Oregon.
Jon Niedermeyer, CEO and managing partner of Niedermeyer Risk Management, and the Niedermeyer Risk Management team will join Hub Northwest.
Niedermeyer Risk Management provides employee benefits consulting, commercial and personal insurance. Niedermeyer Risk Management specializes in the hospitality and construction industries.
Chicago-based Hub is an insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services.
Hub, Pacific Northwest Insurance
Chicago-based Hub International Ltd. acquired the assets of Pacific Northwest Insurance Inc., based in Kirkland, Washington.
Robert James, principal of PNI, and the PNI team will join Hub Northwest. PNI provides property/casualty, and personal insurance solutions to individuals and families, businesses, and high net worth individuals.
Hub, Western Assurance Corp.
Chicago-based Hub International Ltd. also acquired the assets of Western Assurance Corp., located in Albuquerque, New Mexico.
Chris Williams, president of Western Assurance, and the Western Assurance team will join Hub Southwest.
Western Assurance is an independent agency providing insurance services, including commercial and personal insurance, and employee benefits services. Western Assurance specializes in the non-profit sector and the construction, transportation industries.
ALKEME, Chergey Insurance
ALKEME acquired Chergey Insurance in Thousand Oaks, California.
Chergey Insurance offers services including workers’ compensation, property, general liability, and commercial auto.
ALKEME is a brokerage operating in 50 states, specializing in workers’ compensation, property, liability and commercial auto.