Business Moves

June 20, 2022

Alleghany Corp., Berkshire Hathaway

Alleghany Corp. on June 9 said its stockholders approved and adopted Berkshire Hathaway’s offer to buy the company for $11.6 billion.

“We are pleased our stockholders have overwhelmingly voted to support this compelling transaction, which delivers significant value to them. I want to personally thank Alleghany’s employees for their contributions and continued dedication that have made this achievement possible,” said Joseph P. Brandon, Alleghany’s president and CEO, in a statement. “Alleghany looks forward to further building on its success as part of Berkshire Hathaway.”

About 84% of Alleghany’s outstanding common shares, and more than 98% of the votes cast, voted in favor of the merger proposal from Warren Buffett’s Berkshire Hathaway, Alleghany said.

In March, Omaha, Nebraska-based Berkshire Hathaway entered into an agreement with Alleghany to 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 agreement allowed for a “go-shop” period that allowed Alleghany to attract other bidders. The New York-based property/casualty insurer said in April that it solicited alternative proposals from dozens of potentially interested companies but it did not receive any competing offers.

The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions and regulatory approvals.

Starkweather & Shepley, Ferman Group

Rhode Island-based Starkweather & Shepley Insurance Brokerage (S&S) reports it acquired Ferman Group, an East Hartford, Connecticut employee benefits agency serving mid-sized businesses in New England.

Geoff Ferman, president of Ferman Group, said the deal gives his firm a “stronger bench of services and products.”

Ferman Group is now a division of S&S.

Hub, Sandy Spring Insurance

Chicago-headquartered insurance broker Hub International Limited reports it has acquired the assets of Sandy Spring Insurance Corp.

Located in Annapolis, Maryland, Sandy Spring Insurance, a subsidiary of Sandy Spring Bank, offers clients commercial and personal — home, auto and marine — insurance.

The Sandy Spring Insurance team will join Hub Mid-Atlantic.

Sandy Spring Insurance was represented by the consulting firm Reagan Consulting for the transaction.

Hub International has more than 14,000 employees in offices located throughout North America.

Segal, Union Services Agency

Segal, a benefits and HR consulting firm, acquired Bayview Insurance Group d/b/a Union Services Agency, a Michigan-based insurance brokerage firm.

Union Services Agency has focused on serving the insurance needs of labor organizations, multi-employer funds and public sector entities for more than 25 years.

The acquired agency’s USA team has become part of Segal’s Insurance Brokerage Practice, under the leadership of Diane McNally, senior vice president, Segal’s national insurance brokerage services leader.

Segal will now have additional resources to better support clients and expand client relationships in the Midwest, the company said.

Johnson & Johnson, Midlands Management Corp.

Johnson & Johnson acquired the assets of the wholesale brokerage, binding and managing general underwriting units of Oklahoma City, Oklahoma-based Midlands Management Corp.

Midlands is a wholly owned subsidiary of Safety National Casualty Corp.

Midlands’ WB&B and MGU units maintain a primary focus on specialty lines of coverage for both personal and commercial lines of business on an admitted and non-admitted E&S basis.

Midlands’ MGU unit acts as an underwriting manager for various insurance companies for which it primarily underwrites ICOA insurance, Texas Non-Subscriber and related insurance products.

The WB&B unit distributes admitted and non-admitted general, commercial and personal property/casualty products for small-to-mid sized commercial businesses and individuals.

Milestone Partners, GoAuto

Milestone Partners acquired specialty auto insurance holding company Drive Assurance Holdings LLC and the related acquisition of GoAuto LLC and its affiliated technology platform, Adaptive Information Technologies LLC.

GoAuto calls itself a tech-focused, vertically integrated personal auto insurance platform providing low-limit policies through its managing general agent and insurance carrier subsidiaries.

GoAuto is the third largest personal auto insurer in Louisiana, with growing operations in Texas, Nevada and Ohio.

One180 Intermediaries, VFIS

One80 Intermediaries, a wholesale insurance broker, has agreed to acquire VIFS of North Carolina, part of a firm that provides coverage for fire departments and rescue squads.

VFIS began in 1969 as Volunteer Firemen’s Insurance Services. It is now a subsidiary of Glatfelter Insurance Group, a managing general agency and broker, the companies said in a news release.

VFIS services include program administration, education, training and consulting.

Jackie Ireland is the president of VFIS of North Carolina and of Anders, Ireland & Marshall Insurance Group.

One80 Intermediaries is a privately held firm with offices throughout the United States and Canada, according to the news release. The company offers placement services and binding authority for property/casualty, professional and personal lines, life insurance, and travel/accident and health coverages.

One80 specializes in key industry verticals such as medical stop loss, cannabis captives, alternative risk, warranty coverage and lender-based insurance.

Hub, Alexander & Co.

Hub International, a global insurance brokerage firm, has acquired Georgia-based Alexander & Co., an employee benefits firm for school districts and local governments.

Headquartered in Woodstock, Georgia, the 27-year-old Alexander & Co. has focused almost exclusively on public education systems and a few city and county government clients.

Dale Alexander, president and founder of Alexander & Co., and the rest of the Alexander team will join Hub’s Gulf South division.

Hub International has seen steady growth in recent years and continues to expand through regular acquisitions. The firm has more than 14,000 employees in North America.

Keystone Agency, Keyes Agency

Keystone Agency Partners, a brokerage that continues to acquire agencies around the country, said it has taken a majority stake in Keyes Coverage, an insurance agency based in Tamarac, Florida.

Keyes, one of the largest privately owned agencies in South Florida, will retain its Tamarac office.

Keystone, founded in 2020, said it provides services and capital investment to the agencies it acquires a stake in, supporting potential growth of the business.

Keyes Coverage was founded in 1975 by Murray Keyes and his sons, Carey and Kenneth Keyes. It specializes in corporate property/casualty and personal lines coverage and has 65 employees.

Hub, Physicians Risk Associates

Hub International Ltd. acquired the assets of Physicians Risk Associates Insurance Agency LLC in Mission Viejo, California.

Physicians Risk Associates Insurance Agency team will join Hub Los Angeles/Orange County.

Physicians Risk Associates Insurance Agency is an independent insurance agency providing services to businesses, individuals and families. The firm specializes in insurance for medical and healthcare professionals.

Chicago, Illinois-based Hub International is an insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services.