Arbella Introduces CyberPro insurance coverage
“Small and mid-sized businesses are now big targets for hackers,” said Eileen Currie, senior vice president of Commercial Lines at the Arbella Insurance Group. “New cyber security threats are constantly emerging and cyber insurance coverage is no longer a luxury. We are proud to be able to offer our customers this new comprehensive solution that not only provides financial coverage in the wake of a breach, but also serves as a critical resource for business owners.”
Citing a 2017 Ponemon Institute study which says more than 61 percent of small businesses have been hacked in the last 12 months, Arbella has announced the launch of CyberPro Data Breach and Third Party Cyber coverage. Designed specifically for small and medium-sized businesses, CyberPro offers an end-to-end cyber security solution, including proactive protection and post-breach remediation to help minimize the risk and impact of a data breach and third party cyber liability.
This new product will be available to new Arbella customers in Massachusetts, Connecticut, Rhode Island, and New Hampshire starting December 1st, with renewal customers eligible as of February 1, 2018.
Heritage completes acquisition of NBIC
It is official–Heritage has officially completed its acquisition of the Narragansett Bay Insurance Company as of December 1st. According to a company announcement, Heritage purchased the Rhode Island-based regional homeowners insurance company $250 million, consisting of $210 million in cash and $40 million in shares of its common stock, subject to post-closing adjustments.
As Agency Checklists noted in its original article of August 14, 2017, “Heritage Insurance to Buy Narragansett Bay In $250 Million Dollar Deal.” Heritage’s decision to purchase NBIC is part of its plans to become a leading super regional personal lines carrier in New England. As a result of this latest acquisition, Heritage now has a presence in 11 states with over $900 million of gross premiums written.
In commenting on the completion of the acquisition, Bruce Lucas, Heritage’s Chairman and CEO, said, “We are very excited to join forces with NBIC, a seasoned company with a strong track record and talented management team. Completing this acquisition represents a quantum leap forward in executing our geographic diversification strategy. We see an enormous opportunity to leverage our combined platform to accelerate growth along the Eastern seaboard. We expect an approximate increase of 50% in gross premiums written and net income in 2018 as a direct result of this transaction. The new products, partnerships and bundled products that we will gain from the NBIC business make this transformative acquisition an important step in our continued growth. We look forward to working with NBIC’s employees and agents for years to come.”
The Hartford to sell its run-off life & annuity businesses
The Hartford will sell its run-off life & annuity businesses to Talcott Resolution, a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. The deal is valued at $2.05 billion, and will be comprised of cash from the investor group, a pre-closing cash dividend, debt included as part of the sale, and a 9.7 percent ownership interest in the acquiring company.
The total consideration amount does not include $1.4 billion in dividends previously paid by Talcott Resolution in 2017. The sale is anticipated to close in the first half of 2018, subject to regulatory approval and other closing conditions.
“I am pleased to announce that we have reached an agreement to sell Talcott Resolution for total value to shareholders of approximately $3 billion, including the carrying value of retained tax benefits,” said The Hartford’s Chairman and CEO Christopher Swift. “After a thorough and robust process, we concluded that this transaction is the best path forward. It will complete our exit from the run-off life and annuity businesses and strengthen our focus on growing our market-leading Property and Casualty, Group Benefits and Mutual Funds businesses. In addition, we will receive an equity interest in the acquiring company which will enable us to participate in Talcott Resolution’s continued success. We also expect the sale will improve our future ROE and earnings growth profile and enhance the company’s financial flexibility.”
The Hartford’s Chief Financial Officer Beth Bombara said, “We believe that this transaction provides an excellent outcome for shareholders, although it results in a GAAP loss. It accelerates the return of capital from Talcott Resolution compared with the gradual run-off of the business. We are evaluating opportunities to deploy proceeds from the sale and currently expect to use approximately $400 million for additional debt repayment, on top of the $500 million we previously announced we would repay in 2018.”
According to the terms of the agreement, the deal will see approximately 400 Hartford employees join Talcott Resolution. The deal which still needs to obtain the appropriate regulatory approvals as well as satisfy other closing conditions, will likely be completed in early 2018.