MARKETS: PROVIDENT ACQUIRES COMP CASE MANAGER GENEXPosted On: Apr. 6, 1997 12:00 AM CST
CHATTANOOGA, Tenn.-Life and accident insurer Provident Cos. Inc. has acquired GENEX Services Inc. and GENEX Services of Canada Inc.
Terms of the transaction were not disclosed.
Wayne, Pa.-based GENEX, a subsidiary of First Data Corp., provides case management, vocational rehabilitation and related services to corporations, third-party administrators and insurance companies in the management of disability and workers compensation claims.
GENEX will operate as an independent subsidiary of Chattanooga, Tenn.-based Provident. GENEX's current management team, headed by Peter C. Madeja, president and chief executive officer, will remain in place. Mr. Madeja also will become an executive vp of Provident.
ITASCA, Ill.-Arthur J. Gallagher & Co. has acquired insurance benefit consulting companies Arnold & Co. of Troy, Mich., and Byerly & Co. of Denver.
Terms were not disclosed.
Arnold & Co., which offers retirement planning and actuarial services, will merge with the Itasca, Ill.-based broker's Gallagher ABOW Inc. unit.
Byerly & Co., which offers group benefit consulting services and administers health purchasing cooperatives, association group medical, life and disability programs and Section 125 plans, will operate under its own name as a Gallagher unit.
HCC, AVEMCO merge
HOUSTON-HCC Insurance Holdings Inc. and AVEMCO Corp. are combining in a merger that will offer an expanded market to buyers of commercial aviation insurance, property, energy and other coverages.
A stock-for-stock transaction valued at about $230 million means Frederick, Md.-based AVEMCO will operate as a wholly owned subsidiary of Houston-based HCC.
HCC is the parent of surplus lines subsidiaries Houston Casualty Co. and Trafalgar Insurance Co., both of Houston. The surplus lines insurers specialize in general aviation, large property and blue water marine risks. These companies wrote about $225 million in 1996 gross premiums.
HCC also owns LDG Management Co., a managing general agency in Wakefield, Mass., that specializes in accident and health business. IMG Insurance Co. in Amman, Jordan, is an HCC subsidiary that writes non-U.S. marine and energy business.
AVEMCO Corp., which will continue to operate as a subsidiary, is the parent of AVEMCO Insurance Co. and U.S. Specialty Insurance Co. of Frederick, Md.
Those companies, both admitted insurers, wrote gross premiums of about $105 million last year, mostly for commercial aviation and personal aircraft risks.
In a statement announcing the merger, which is subject to regulatory approval, HCC executives said the "synergism between the two companies would result in increased underwriting capabilities and expansion opportunities, particularly in the aviation field."
HCC projects the new company will write more than $250 million in gross premiums on commercial and personal aviation risks in 1997.
For more information, call 713-690-7300.
Hilb acquires Gow
GLEN ALLEN, Va.-Hilb, Rogal & Hamilton Co. has acquired Gow Management Services and the operating assets of S.H. Gow & Co. Inc. The Gow operations offer insurance agency and risk management services in Buffalo, Rochester and Syracuse, N.Y. Terms of the transaction were not disclosed.