Business Moves
Lemonade, Metromile
Digital insurer Lemonade said it has closed of the acquisition of pay-per-mile car insurance provider Metromile in an all-stock transaction.
Metromile shareholders received 7.3 million Lemonade shares, while Lemonade received a business with over $155 million in cash, over $110 million in premiums, an insurance entity licensed in 49 states, and a team it said is “unsurpassed in harnessing precision data for auto insurance.”
Lemonade announced the planned deal in November 2021, just a week after launching Lemonade Car in Illinois. The AI-powered insurance company includes renters, home, pet, life and auto in its product suite. In a letter to shareholders early this year, Lemonade executives said to expect peak losses in 2022. However, the forecast did not include the impact of Metromile acquisition.
Lemonade said most Metromile employees will transition to roles at Lemonade, and Metromile CEO Dan Preston has assumed the role of senior vice president of strategic initiatives.
The Metromile app and brand will continue in-market until all customers can be seamlessly transitioned to the Lemonade app and brand. Metromile common stock will cease trading on NASDAQ.
World Insurance, Coverage Specialists
Insurance brokerage World Insurance Associates reports that it has acquired Coverage Specialists, Inc. of Pompton Plains, New Jersey.
Coverage Specialists is a 35-year-old family-owned agency founded in 2010 that provides property/casualty insurance with a focus on the trucking and transportation industry.
World Insurance Associates is headquartered in Iselin, New Jersey. Since its founding in 2011, World has completed 153 acquisitions and has more than 250 offices across the country.
Hilb Group, King and Cushman Agency
The Hilb Group has acquired Massachusetts-based King and Cushman Agency, further expanding the company’s presence throughout New England.
Based in Northampton, King and Cushman has served the area for nearly 100 years, offering personal and commercial property/casualty insurance.
Agency Principal Scott King and his team will join Hilb Group’s New England regional operations.
In 1926, the Franklin King Jr. Insurance Agency was opened in Haydenville, Massachusetts. In 1932, the office moved to Northampton. In 1947, King teamed with Albert Cushman, then president of Northampton National Bank, to form what is known today as King & Cushman Inc., which has been a family run business.
King & Cushman acquired the Francis P. Lyons Insurance Agency in 1986.
The Hilb Group, headquartered in Richmond, Virginia, is a portfolio company of The Carlyle Group, a global investment firm. Hilb Group has grown through acquisitions, having completed more than 135 acquisitions with over 100 offices in 22 states. Hilb Group is rated as a Top 100 P/C Independent Agency by Insurance Journal.
Hub, Stop Loss Brokers
Global insurance broker HUB International Ltd. reported that it has acquired the assets of Stop Loss Insurance Brokers, Inc. and Berkeley Insurance Brokers, Inc.
Located in Boston, Massachusetts, Stop Loss Insurance Brokers is an independent broker for medical stop loss for the self-funded municipal market and businesses throughout Massachusetts and New England.
Shawn McLaughlin, president of Hub New England, said that Denise Doyle, president of Stop Loss Insurance Brokers, and the firm’s team will join Hub’s benefits practice.
Headquartered in Chicago, Illinois, Hub International has more than 14,000 employees in offices located throughout North America.
PCF Insurance Services, Zinc Insurance
PCF Insurance Services acquired Zinc Insurance in Solon, Ohio.
Zinc specializes in insurance and risk management services for the trucking, construction, contracting, and motorsports industries.
Lehi, Utah-based PCF Insurance Services is a consultant and insurance brokerage firm offering an array of commercial, life and health, employee benefits, and workers’ compensation services.
EIS, Metromile
EIS, a system and digital insurance platform provider, has acquired San Francisco, California-based Metromile’s Enterprise Business Solutions, a SaaS-based claims automation and fraud detection system from Lemonade. The company expects the acquisition of the EBS assets to expedite EIS’ entry into new markets.