Burns & Wilcox Enters South Carolina With Broker Buy; First Financial Exits Insurance

<p><location value="LS/us.mi" idsrc="xmltag.org">Michigan</location>-based <org value="ACORN:2435134479" idsrc="xmltag.org">Burns & Wilcox's</org> purchase of a <location value="LS/us.sc" idsrc="xmltag.org">South Carolina</location> managing general insurance agency from a large Southern financial corporation marks its entry into the Palmetto State. The sale also marks <org value="NASDAQ-NMS:FFCH" idsrc="xmltag.org">First Financial Holdings Inc.'s</org> exit from the insurance sector, according to FFH Chief Financial Officer <person>Blaise Bettendorf</person>. The deal, for <org value="ACORN:2705460581" idsrc="xmltag.org">Kimbrell Insurance Group Inc.</org>, was an all-cash transaction but further terms of the deal were not disclosed. Kimbrell is based in the <location value="LU/us.sc.myrach" idsrc="xmltag.org">Myrtle Beach</location> vicinity.</p><p>"Insurance returns have declined, given pressures on pricing over the last several years," Bettendorf said by email. "The decision to exit the insurance business was related to capital deployment and the best opportunity to maximize the returns on that capital, which was considered to be greater within our core banking franchise."</p><p>The sale was the second significant spin-off this year of insurance brokerage assets by <location value="LU/us.sc.chlstn" idsrc="xmltag.org">Charleston, S.C.</location>-based FFH. In July, FFH sold its <org value="ACORN:3940778811" idsrc="xmltag.org">First Southeast Insurance Services</org> broker unit to <location value="LU/us.il.chicgo" idsrc="xmltag.org">Chicago's</location><org value="ACORN:4125424165" idsrc="xmltag.org">Hub International Ltd.</org> for about <money>$38 million</money>.</p><p>Bettendorf said "Kimbrell was a significantly smaller subsidiary (than First Southeast) in terms of total revenues and assets."</p><p>"This acquisition strengthens our position in the South, providing our brokers and agents additional resources, insurance products, and greater depth of service," said <person>Alan Jay Kaufman</person>, president, chairman and chief executive of <org value="ACORN:2435134479" idsrc="xmltag.org">Burns & Wilcox</org>, in a statement.</p><p>First Financial bought Kimbrell in <chron>January 2004</chron> for an undisclosed amount, according to its website. Kimbrell was one of eight insurance businesses purchased by FFH between 2000 and 2008, including its <chron>April 2008</chron> acquisition of broker Somers-Pardue for about <money>$26 million</money>. Somers-Pardue was sold to Hub as part of its July transaction with FFH.</p><p><org>Hub International</org> is ranked 11th in <org>Best's Review Magazine's</org> listing of the Top 20 Global Brokers based on 2010 total revenues.</p><p><org value="ACORN:2435134479" idsrc="xmltag.org">Burns & Wilcox</org> operates 37 offices across <location value="LC/us" idsrc="xmltag.org">the United States</location> and one in <location value="LU/gb.eng.london" idsrc="xmltag.org">London</location>. Founded in 1969 and headquartered in <location value="LU/us.mi.farlls" idsrc="xmltag.org">Farmington Hills, Mich.</location>, <org value="ACORN:2435134479" idsrc="xmltag.org">Burns & Wilcox</org> is an insurance brokerage and underwriter of commercial and professional liability, property, marine and personal insurance. It is wholly owned by the <org value="ACORN:671061830" idsrc="xmltag.org">H.W. Kaufman Financial Group</org>.</p><p><org>Kaufman Insurance Group</org> currently has a Best's Financial Strength Rating of A (Excellent).</p><p>(<person>Dennis Gorski</person>, Best's Review managing editor)</p>