Houston International Names Top Execs for Its P/C Subsidiary

Houston International Insurance Group has named Mark Rattner chairman and chief executive officer of its property/casualty subsidiary, Imperium Insurance Co.Kirby Hill was named Imperium's president and chief operating officer.

Both will be based in Imperium's New York home office, HIIG said.

Rattner is a 24-year insurance veteran, previously serving as CEO of Professional Indemnity Agency until 2006. Hill has worked in the insurance industry for 22 years and is the cofounder of the Norwich Group, an intermediary and underwriting agency. Prior to this, he worked at American International Group and PMA Insurance Group.

Imperium is the new name for Delos Insurance Co. Its parent, Lightyear Delos Acquisition Corp., merged earlier in December with Southwest Insurance Partners. The new holding company was renamed HIIG.

HIIG recently sold its wholesale insurance broker subsidiary, Southwest Risk LP, to New York-based, private equity firm GCP Capital Partners LLC (BestWire, Dec. 29, 2010).

Imperium is domiciled in Delaware, has more than $200 million in capital and surplus and is admitted in all 50 states, according to HIIG. Imperium's business primarily consists of small and medium-size accounts written through nonaffiliated underwriting agency partners and provides fronting for captive programs and reinsurer-driven relationships.

HIIG is an insurance holding company headquartered in Houston, with property/casualty insurance companies; a life/health insurance company; and underwriting agency subsidiaries. It is headed by Stephen L. Way, chairman and CEO. Way was formerly the chairman and CEO of HCC Insurance Holdings. He stepped down as HCC chairman in 2007 (BestWire, Feb. 21, 2007). In 2006, Way resigned as HCC CEO after the results of a probe into the company's past stock option-granting practices were released. The investigation by the U.S. Securities and Exchange Commission probed whether company executives illegally backdated the grants, increasing the value of the options by timing them at low points, which in turn increased executive payouts (BestWire, Nov. 20, 2006). An independent investigation of the company's option-granting practices from 1995 onward concluded that HCC used incorrect dates for certain stock-based compensation (BestWire, Dec. 20, 2006).

Way and a group of private investors founded Southwest Insurance Partners in 2007 to make strategic acquisitions and investments in the insurance industry, according to Best Link, which provides online access to A.M. Best's database of insurance information.

Delos Insurance Group currently has a Best's Financial Strength Rating of A- (Excellent). The rating was placed under review following the announcement of Lightyear Delos-Southwest Insurance Partners merger (BestWire, Oct. 8, 2010). The under review status reflects the uncertainties associated with this transaction and any changes that may be brought on by changes in leadership, including changes in strategic direction and any potential market/agency dislocation as a result of this merger. This action also takes into consideration the relatively unseasoned tenure of Delos, which commenced operations in 2006, and the material reserve strengthening at the company in 2010 attributable to one specific program, Delos' largest in terms of written premium, Best said. Despite these near-term challenges, Delos should benefit from the improved liquidity and financial flexibility at the parent holding company and the advantages to be gained from Way and his extensive insurance experience, including his vast amount of business relationships forged over a career spanning more than four decades, according to Best.

(By Rick Cornejo, managing editor, BestWeek: rick.cornejo@ambest.com)