OWNERSHIP CHANGES
Big fish being swallowed by bigger fish has become a way of life in the P-C agency equity market. Banks or national brokers are usually the bigger fish. But sometimes the would-be target fish don't become dinner. Instead they make deals of their own.
That's the case in California, where InWest Insurance Services, headquartered in Santa Maria, will merge with Tolman and Wiker Insurance of Ventura, creating an entity with premiums exceeding $250 million. Jim Pollard, secretary-treasurer of InWest, says that despite receiving offers to be acquired by national brokers, "We wanted to remain independent."
Pollard adds that by keeping its independence, the merged firm, to be known as TWIW Insurance Services, will be able to continue operating all four of its offices with all producers and staff, numbering approximately 170 people. "The merger will give our people a chance to grow in their work," Pollard says.
The merged agency characterizes itself as the largest agency in the Central Coast area of California--roughly Santa Barbara to Monterey.
Tolman and Wiker, which represents the southern California component of the new firm, began operations in 1923; InWest, with offices in Santa Maria, Monterey and Bakersfield, traces its origin to 1932. "Our respective books of business are complementary," Pollard explains. "We're strong in construction and agriculture; they are strong in construction and public entities business.
He adds that the owners of the two firms have been friends for years, and they talked about a possible merger for two years before executing the agreement. "We did lots of soul searching and due diligence."
The merger of Tolman and Wiker (tolmanandwiker.com) and InWest Insurance Services (inwestinsurance.com) into TWIW Insurance Services will become effective January 1, 2005. MarshBerry served as consultants to both firms.
Other recent ownership changes include the following:
Acordia (www.acordia.com) (a subsidiary of Wells Fargo & Co.) acquires Baldwin & Whitney of Dayton, Ohio.
Baldwin & Whitney, one of the oldest independent agencies in the Midwest (founded in 1881), writes a broad book of P-C and financial services business. According to a statement from Baldwin & Whitney's managing partners, "Acordia opens up more markets to clients, and we can now offer our clients not only insurance products and risk management services, but also financial services through Wells Fargo."
The agency will continue to serve clients from its present locations.
The Baldwin & Whitney acquisition, which was effective May 1, is Acordia's 14th since Acordia became part of Wells Fargo three years ago. It doubles the size of Acordia's operations in Dayton.
Kevin W. Conboy, president and CEO of Acordia, says the broker will continue to look for acquisition opportunities that fit its operating philosophy and that expand Wells Fargo's reach both inside and outside its 23 banking states.
Acordia operates approximately 150 offices in 38 states.
Arthur J. Gallagher & Co. (www.ajg.com) acquires Burch, Marcus, Pool, Krupp, Daniel & Babineaux, Inc., of Lafayette, Louisiana.
Burch, Marcus, Pool, Krupp, Daniel & Babineaux is a 10-year-old P-C and employee benefits firm. It specializes in the energy, construction and transportation industries. The management team and staff will continue to operate in their Lafayette office under the direction of Mitchel Brashier, mid-south regional manager of Gallagher's Brokerage Services Retail Division.
BB&T (www.bbandt.com) buys Kentucky benefits firm to merge with its P-C operations.
BB&T is buying Employee Benefit Services of Lexington, Kentucky, which it will combine with BB&T-Cromwell, a Lexington property/casualty agency that BB&T purchased a year ago.
Employee Benefit Services has 17 employees. It provides life, health, dental, vision and disability income insurance as part of employee benefit plans. BB&T-Cromwell specializes in equine insurance.
BB&T Insurance Services also operates BB&T Old Colony Insurance Services of Louisville.
BB&T Insurance Services, a wholly owned subsidiary of Branch Banking and Trust Company, operates 76 agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida, Kentucky and Alabama.
Brown & Brown buys agencies in Michigan and Texas (www.bbinsurance.com).
The Powers Agency, Inc., of Clarkston, Michigan, which has revenues of approximately $1 million, will continue to operate at the same location, with current personnel. Brown & Brown will acquire the agency's assets and operate it under the direction of Steve Randall, Brown & Brown's profit center manager in Flint.
Balcones-Southwest, Inc., of Austin, Texas, has annual revenues of approximately $3 million. The agency will operate as Brown & Brown's first Austin office, with Mike Hermes, Balcones-Southwest's president, as profit center manager.
Gateway Bank & Trust Co. (www.gatewaybankandtrust.com) purchases Whitehurst Insurance Agency of North Carolina.
Whitehurst Insurance Agency has offices in Elizabeth City, Edenton, and Moyock, North Carolina. It was established in 1908, making it one of the oldest agencies in northeastern North Carolina.
Gateway Insurance Services, the bank's insurance subsidiary, acquired Whitehurst, effective May 1.
Hub International (www.hubinternational.com) purchases the assets of Lyman Insurance Agency, Inc., and Conly-Lyman Insurance Agency, Inc., of Massachusetts.
Lyman, a 24-year-old firm with offices in Woburn and Salem, produces approximately $700,000 in revenue from middle market commercial business and personal accounts. Its owners, Warren and Debbiiangela Lyman, will become senior vice president and vice president respectively at C.J. McCarthy, the Massachusetts hub for Hub International. They will report to Richard J. Palleschi, president.
Lyman's Woburn office will relocate to Wilmington, where Hub's C.J. McCarthy is headquartered. Their Salem office will remain in place.
JMB Insurance, Inc., of Chicago (www.jmbins.com) acquires Schlesinger Associates, Inc., a Chicago-based benefits agency.
Schlesinger Associates will expand JMB's employee benefit and financial security services practice. Bruce Schlesinger will lead that practice as senior vice president of JMB.
JMB was founded in 1971 by JMB Realty and spun off as a stand-alone firm in 1986. It is the successor to Sacks & Sacks and SSI Agency, Inc. It provides commercial and personal lines P-C, as well as financial planning products.
Peoples Bancorp acquires Barengo Insurance Agency of Marietta, Ohio. (www.peoplesbancorp.com)
Barengo Insurance Agency is a 40-year old-firm with annual revenues of about $2.5 million. It writes mostly property/casualty business with some group benefits accounts. All agency employees have been retained as employees, including principals Randy Barengo and Jim Barengo, who maintain leadership roles in the new organization.
Peoples Insurance Agency, the insurance agency subsidiary of Peoples Bancorp, used a mix of cash and Peoples Bancorp stock to acquire Barengo Insurance Agency.
Wm. Rigg Co. (www.wrigg.com) of Fort Worth, Texas, acquires substantially all the assets of Webber Insurance Agency of Fort Worth.
Webber Insurance Agency, a 19-year-old firm with eight employees, has achieved an annual growth rate of 15%-20%. It concentrates its marketing efforts on four niche businesses: independent auto dealerships, recreational vehicle dealerships, car rental companies, and equipment rental dealers. Webber's president, Dennis Webber, will join Wm. Rigg as senior vice president.
Wm. Rigg is part of The Rigg Group, a 109-year old risk management and insurance brokerage firm with 109 employees and additional offices in Dallas and Houston. *