Montgomery Insurance Looks to Expand Florida Commercial Lines

Montgomery Insurance and its underwriting companies are looking to use its regional focus to take advantage of what the company sees as an opportunity to grow its commercial lines business in Florida using independent agents.

"They are local to the Florida marketplace and are used to placing business," Michael J. Plavnicky, president and chief executive officer of Montgomery, told BestWire. "In Florida, where there are a unique set of challenges, that is very helpful."

Montgomery Insurance, headquartered in Charlotte, N.C., is part of Liberty Mutual Agency Markets, a unit of Liberty Mutual Group, with operations in seven states in the Southeast.

In August 2007 Liberty Mutual finalized an acquisition of Ohio Casualty Corp., with its presence in Florida providing insurance for construction. In September 2008 Liberty Mutual bought Safeco Corp., which was in Florida selling mostly commercial automobile insurance. "There is an opportunity here for us to add to the presence already in the state and add to the benefits we can deliver," Plavnicky said.

Montgomery Insurance plans to target small- to mid-sized commercial accounts with products for hotels, retail, professional offices, garages, churches and restaurants. The business insurer will also offer inland marine, excess casualty, bond/surety and worker's compensation in support of its package and business owners' policies. Plavnicky said the company also has the capacity to write some property business.

Plavnicky said Montgomery looks to expand its school business and recently introduced a global positioning system-based product for commercial auto business for owners to keep track of fleets. "We are looking to write more of this," Plavnicky said.

Policies in Florida are currently issued by American Economy Insurance Co., General Insurance Company of America, American States Insurance Co., First National Insurance Company of America, American Fire and Casualty Co., West American Insurance Co., and Ohio Casualty Insurance Co.

Members of Liberty Mutual Insurance Cos. currently have a Best's Financial Strength Rating of A (Excellent).

(By Chad Hemenway, associate editor, BestWeek: [email protected])