Commerce Group, SWICO Enterprises, State-Wide Insurance
The Commerce Group Inc., the largest auto insurer in Massachusetts, expects to enter the New York personal lines insurance market in 2007 as part of its plan to expand geographically. Under the terms of the agreement, ACIC Holding Company Inc., a subsidiary of Commerce which is jointly owned by Commerce and AAA Southern New England, will acquire SWICO Enterprises Ltd., the holding company for Hempstead, N.Y.-based property and casualty insurer State-Wide Insurance Co., in a transaction valued at $52 million.
State-Wide Insurance Co., licensed in both New York and New Jersey, primarily writes private passenger automobile insurance in New York. Commerce said it intends to expand the company by entering the New Jersey market as soon as practicable. As of year-end 2005, State-Wide reported approximately $41 million in direct written premiums. At Sept. 30, 2006, its policyholders’ surplus was $46.4 million.
The Commerce Group’s property and casualty insurance subsidiaries include The Commerce Insurance Co. and Citation Insurance Co. in Massachusetts, Commerce West Insurance Co. in California, and American Commerce Insurance Co. in Ohio. It is rated A+ (Superior) by A.M. Best. A.M. Best Co. placed the financial strength rating of A- (Excellent) of State-Wide Insurance Co. under review with positive implications.
San Francisco-based Majestic Insurance Co., recently acquired by CRM Holdings Ltd., a provider of workers’ compensation services, has received licensing approval to operate in New York. Majestic currently writes workers’ compensation in 15 other states, and operates primarily in California, Arizona, Alaska, Nevada, Oregon and Washington. Most recently in November 2006, Majestic was upgraded to an A- rating (Excellent) by rating agency A.M. Best. CRM provides traditional workers’ compensation insurance as well as fee-based management and other services.
Northeast wholesale broker Jimcor Agencies acquired Federico and Associates, a regional wholesaler based out of Lansdowne, Pa. Terms of the agreement have not been disclosed. Headquartered in Montvale, N.J., Jimcor Agencies has seven offices located throughout New York, New Jersey, Pennsylvania and Massachusetts.
Hub International Ltd. wants to acquire Vermont-based Coburn Insurance Agency Inc. With the acquisition of Coburn, Hub’s transportation practice would have annualized revenue of an estimated $25 million. Coburn has offices in Burlington (Colchester) Vt., Hilton Head, S.C., Memphis, Tenn., Deland, Fla. and New Smyrna Beach, Fla.
HRH, Loan Protector General Agency
Insurance broker Hilb Rogal and Hobbs Co., out of Richmond, Va., agreed to acquire Loan Protector General Agency Inc. and Loan Protector Tracking Services Inc., a provider of customized insurance tracking programs and insurance products to the mortgage industry. Terms of the transaction were not disclosed. Founded in 1991, the Cleveland, Ohio-based company expects revenues of approximately $8 million in 2006.