Business Moves
Liberty Mutual Agency Corp.
Boston-based Liberty Mutual Group has announced that its subsidiary, Liberty Mutual Agency Corp. (LMAC) has filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of shares of its common stock.
LMAC consists of substantially all of the operations currently conducted by its Agency Markets strategic business unit. LMAC offers personal and commercial lines of insurance to individuals and small to mid-sized businesses, as well as surety bonds, through independent agents.
Liberty Mutual Group will own at least 80 percent of LMAC following the initial public offering and maintain a significant controlling interest going forward, while other shareholders will own up to 20 percent.
The status of Liberty Mutual Holding Co. Inc. (LMHC) as a mutual holding company will be unaffected by this proposed transaction. Similarly the status of the other companies in the Liberty Mutual Group will be unchanged.
LMHC is a mutual holding company that was formed by the reorganization of its three principal mutual insurance companies which became separate stock insurance companies in 2001 and 2002. LMHC conducts substantially all of its business through four strategic business units: Personal Markets, Commercial Markets, Agency Markets and International. Each business unit operates independently of the others and has dedicated sales, underwriting, claims, actuarial, financial and certain information technology resources.
The transaction requires review by the SEC, which Liberty Mutual expects will be completed in the third quarter of 2010.
CNA Select Risk
Chicago-based CNA Select Risk – which includes excess and surplus (E&S) insurance business, as well as wholesale property accounts - announced growth in its casualty unit with the opening of new locations in New York City and, soon, Los Angeles.
Housed within existing CNA branch offices, the two locations will help CNA Select Risk extend its geographic reach with greater accessibility to distribution partners, and continue to provide a customer-focused approach to writing wholesale casualty business.
Sean McPhillips, who recently joined CNA Select Risk as regional assistant vice president, will lead the New York office and focus on developing CNA’s northeast presence. McPhillips has 23 years of casualty insurance experience, mostly as an E&S underwriter. He most recently served as manager of the First Mercury Emerald office in New York City.
McCutcheon Burr, Gardner-Kirby, Hedden Insurance, Stone Insurance, Brown & Brown
Florida-based Brown & Brown Inc. has acquired four retail insurance agencies in Central and Southeast Connecticut with combined revenues of $7.2 million.
The acquired agencies are McCutcheon Burr & Sons, of Middletown, The Gardner-Kirby Corp., of Meriden, Hedden Insurance, of Waterford and Stone Insurance Agencies, of Meriden.
Donald McGowan, executive vice president of Brown & Brown of Connecticut Inc., will oversee the newly acquired operations.
J. Scott Penny, regional executive vice president of Brown & Brown Inc, said Brown & Brown was “impressed with the quality and integrity of these operations since we entered the Connecticut marketplace in 2001,” adding that “the transaction significantly enhances our presence in the Constitution State and throughout New England.”
The selling agencies’ operations in Bridgeport, Jewett City and Marlborough, Connecticut, and their specialty programs for transportation and drag racing industry participants, were not part of this transaction, the company said.
Glover Agency, San Angelo Insurance
John M. Glover Agency has acquired APS San Angelo Insurance Agency based in Waterbury, Connecticut.
Terms of the deal were not released.
APS San Angelo has been doing business in the Waterbury area for over 50 years. John Forlivio, president and CEO of the John M. Glover Agency, said the deal further expands his agency’s operations in the area. John M. Glover Agency is one of the largest in Connecticut, with 11 offices throughout the state, as well as locations in New York, Massachusetts and New Jersey.
Masiello Insurance Agency
New Hampshire-based Masiello Insurance Agency Inc. has opened a Seacoast office in the Granite State. The Hampton office, which serves both southern Maine and eastern New Hampshire, is operated by Joe Frechette – a former state legislator – and Jamie DeStefano.
Masiello Insurance is the founding member of SAN Group Inc. a network of 285 independently owned and operated insurance agencies across the Northeast representing more than 35 insurance companies.
Risk Transfer Insurance Alliance, Hub International
Hub International has acquired a New England-based retail agency that specializes in property/casualty insurance and related risk management services for the health care industry.
Risk Transfer Insurance Alliance (RTIA) is based in Southborough, Massachusetts – with additional offices in Shelton, Conn., and Portsmouth, N.H. – and generates $3 million in annual revenue. It will become part of Hub’s New England team.
Terms of the deal were not disclosed.
Shawn J. McLaughlin, president of RTIA, will continue to manage the operations of the business for Chicago-based Hub International.
Smart Choice
The North Carolina-based Smart Choice Agents Program, which says it currently provides personal and commercial lines markets for some 3,000 independent agencies in 32 states, is expanding into New York, Virginia and four other states. Smart Choice provides access to personal and commercial lines property and casualty markets for agents who cannot meet insurers’ standard production requirements.