Business Moves
Berkshire Hathaway
Warren Buffett’s Berkshire Hathaway reached an agreement with Alleghany Corp. to buy the New York-based property and casualty insurer for about $11.6 billion.
Omaha, Nebraska-based Berkshire will acquire all outstanding Alleghany shares for $848.02 per share in cash in a transaction unanimously approved by both boards of directors. Berkshire said the acquisition price represents a multiple of 1.26 times Alleghany’s book value at Dec. 31, 2021.
The deal brings Joseph Brandon, Alleghany’s president and CEO, back into the Berkshire family. From 2001-2008, Brandon was chair and CEO of Berkshire Hathaway’s General Re Corp. He joined Alleghany as executive vice president in 2012 and succeeded Weston Hicks as president of Alleghany in April last year.
Alleghany will continue to operate as an independent entity. The deal is set to close in the fourth quarter after regulatory approvals and approval by Alleghany stockholders.
In a statement, Berkshire CEO Buffett said he has been watching Alleghany closely for over 60 years, and that Alleghany “has many similarities to Berkshire Hathaway.”
In addition to General Re, Berkshire’s reinsurance and specialty businesses include National Indemnity, Berkshire Hathaway Specialty and USLI, among others.
Alleghany’s reinsurance and specialty operations include TransRe, RSUI and CapSpecialty. Berkshire’s insurance operations also include personal lines giant GEICO.
Like Berkshire, in addition to operations in insurance and reinsurance, Alleghany has an extensive portfolio of investments in non-insurance companies. The company was started in 1929 with a focus on real estate in Cleveland before entering the railroad business.
When its founders died, Robert Young and Allan Kirby purchased the company and focused on an acquired mutual funds business to recover from the effects of the Great Depression. Alleghany sold its stake in the mutual funds business in 1984 and used the proceeds to get into insurance. The Kirby family has remained a part of Alleghany.
Under the terms of the definitive merger agreement, Alleghany may actively solicit and consider alternative acquisition proposals during a 25-day “go-shop” period. Alleghany has the right to terminate the merger agreement to accept a superior proposal, subject to the terms of the merger agreement.
Goldman Sachs & Co. LLC is serving as financial advisor and Willkie Farr & Gallagher LLP is serving as legal advisor to Alleghany. Munger, Tolles & Olson LLP is serving as legal advisor to Berkshire Hathaway.
Hilb Group, E.B. Cohen Insurance
The Hilb Group has acquired E.B. Cohen Insurance and Risk Management, expanding the company’s presence in the tri-state area.
E.B. Cohen has offices in both Roseland, New Jersey, and New York, New York, and provides insurance and risk management services with a focus on hospitality, real estate, and small businesses.
Agency principals David and Neil Owens and their employees will join the Hilb Group’s tri-state regional operations.
The Hilb Group is a property/casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Virginia.
The company has completed more than 130 acquisitions and now has more than 100 offices in 22 states.
Hilb Group is a portfolio company of The Carlyle Group.
Ohio National Mutual Holdings
Ohio National Mutual Holdings Inc. and its wholly owned subsidiary Ohio National Financial Services Inc., a leading provider of financial services, successfully completed its sponsored demutualization transaction with Constellation Insurance Holdings Inc.
Following the approval of the transaction by member vote on March 11, 2022, ONMH has converted to a stock company, renamed Ohio National Holdings Inc., and has become an independently managed subsidiary of Constellation.
Ohio National Financial Services Inc. remains a subsidiary to ONH (collectively referred to as Ohio National). Ohio National will maintain its brand, management team and infrastructure, and will continue to be headquartered in Cincinnati, Ohio.
As part of the transaction, Constellation has committed to contribute $500 million of capital into Ohio National Life Insurance Co. over a four-year period, further strengthening Ohio National’s strong capital position and ability to fulfill its obligations, as well as to invest in organic and inorganic growth opportunities.
Agam Capital Management LLC, an insurance solutions provider and strategic partner to Constellation, brings substantial variable annuity risk management and insurance industry expertise, which significantly strengthens Ohio National’s ability to capitalize on inorganic growth opportunities, according to the announcement of the transaction.
Sidley Austin LLP served as legal counsel to Ohio National and Debevoise & Plimpton LLP served as legal counsel to Constellation on this transaction.
Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor to Ohio National and its Board of Directors.
Relation Insurance Services, Woller-Anger & Company
Relation Insurance Services Inc. announced it acquired the assets of Wisconsin-based Woller-Anger & Company.
Woller-Anger & Company is a full-service retail insurance agency, and offers commercial lines, personal lines, and life and health coverage for clients across a range of industries.
Woller-Anger is headquartered in Elm Grove, Wisconsin, and will join Relation’s Great Lakes region.
Erv Woller and Bob Anger will continue to lead Woller-Anger under Relation.
High Street Insurance Partners, Gemini Risk Partners
High Street Insurance Partners has acquired Michigan-based Gemini Risk Partners.
Gemini Risk Partners was founded by attorneys David Kramer and Theodore Nittis to service the insurance needs of law firms.
The agency specializes in providing professional liability coverage and other comprehensive insurance solutions exclusively to law firms.
Traverse City, Michigan-based HSIP is a full-service independent insurance brokerage firm.
Relation, Dixon Insurance Services
Relation Insurance Services Inc. has acquired the assets of Arkansas-based Dixon Insurance Services LLC.
Dixon is a multi-line property/casualty agency with a heavy focus on commercial lines within the farm and agriculture industry.
Dixon is headquartered in Lake City, Arkansas.
The company will fold into Relation’s Central Region and will report up through Mark Kochner.
Relation is an insurance brokerage that offers superior risk-management and benefits-consulting services through its family of brands across the U.S.
NFP, Achilles & Associates
NFP has acquired Achilles & Associates, an Austin, Texas-based proberty/casualty broker that provides customized commercial P/C, personal lines P/C, and benefits insurance products and services to individuals, small businesses and middle market clients.
The acquisition strengthens NFP’s capabilities and product offerings in its Central region, according to the companies’ announcement.
Firm principals Jerry Achilles and David Achilles will join NFP as vice presidents and report to Kevin Brown, managing director, Corporate Services.
NFP provides specialized property and casualty products, corporate benefits, retirement, and individual coverage through licensed subsidiaries and affiliates. It has some 6,600 employees around the world.
Hub, JAG
Hub International, an insurance brokerage firm, acquired JAG Investment Partners and its JAG Insurance Group, based in Coral Gables, Florida, the company announced.
JAG Insurance specializes in insurance products and consulting for a number of industries, including hospitality, non-profit and real estate.
The move expands Hub’s services in the South. Hub, headquartered in Chicago, said it has more than 14,000 employees in North America.
King, Generic
King Insurance, an insurance brokerage known for its rapid expansion in recent years, has acquired Generic Insurance Agencies of North Central Florida.
GIA operates out of offices in Gainesville and West Palm Beach, offering commercial and personal lines products to about 3,000 customers, the company said in a news release.
The agency’s Gainesville office will be combined into King’s Gainesville site, and the West Palm office will remain.
King was founded in 1974 and is headquartered in Gainesville. The firm offers property/casualty and employee benefits insurance solutions.
Hub, Chun-Ha Insurance Services
Hub International Ltd. acquired Chun-Ha Insurance Services Inc. in Garden Grove, California.
Chun-Ha Insurance is an agency serving the Korean American community, providing insurance solutions, including commercial and personal insurance, and employee benefits services.
Ki Hong Park, CEO and president of Chun-Ha Insurance, and the Chun-Ha Insurance team will join Hub Los Angeles/Orange County
Chicago, Illinois-based Hub is an insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services.
ALKEME, Snapp & Associates
ALKEME has acquired Snapp & Associates Insurance Services in San Diego, California.
Snapp & Associates serves a broad base of industries and has a specialty focus in risk management, insurance planning and employment benefits services in the hospitality, entertainment, construction, and real estate industries.
Ladera Ranch, California-based ALKEME is backed by GCP Capital Partners, and provides services including property/casualty, benefits, surety, risk and wealth management.