Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
The acquisition of Campania Group Inc. by Hanover Insurance Group Inc. is a good start but "not the end" for a company with its sights set on insurance for the health care industry.
Andrew Robinson, executive leadership team member responsible for Hanover's health care business, told BestWire that Hanover has been "seeking to enter the health care market for some time" and found Campania's lines of businesses appealing.
"Our view is not to enter into the meat of the med-mal market," Robinson said. "We're interested in the niche-y stuff." The company has also heard from its agents, who are looking to certain high-growth segments of insurance for the health care industry to "grow their books where there may be some contraction in other parts."
Hanover's business is marketed and distributed by approximately 3,000 independent agencies, according to BestLink.
The niche solutions offered by Vienna, Va.-based Campania include insurance for durable medical equipment for home health care, podiatrists, behavioral health specialists and, to a lesser extent, elder care providers, said Robinson.
Agents will be able to integrate the niche products offered by Campania into other Hanover coverages, like commercial automobile or marine, Robinson said. "They can wrap these around other professional coverages," he said. "We tend to build complete accounts in this manner."
The agreement with Campania follows Hanover's announcement that it secured a deal to take over renewal rights for a majority segment of OneBeacon Insurance Group's small and middle-market commercial business. Hanover acquired as much as $400 million in renewals from OneBeacon, bolstering scale in Hanover's commercial lines and increasing its portfolio with almost 20 new programs (BestWire, Dec. 4, 2009). Hanover said it has launched more than 30 products and programs, purchased three other specialty insurance providers and built industry and niche solutions for a dozen new markets over the past five years.
Hanover's definite agreement to acquire Campania is subject to regulatory approvals. The deal is expected to close by the end of the first quarter, the company said. Terms were not disclosed.
Hanover Insurance Group Property and Casualty Cos. currently have a Best's Financial Strength Rating of A (Excellent).
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)