US insurance major Nationwide has acquired E-Risk Services, an underwriting management facility and general agency for specialty lines of insurance, for an undisclosed price.
The E-Risk platform and solutions will enhance Nationwide’s market-leading excess & surplus lines business.
Nationwide’s focus on growing in management lines and growing in the programs space complements E-Risk’s focus as the organizations partner to provide value-added solutions to small and medium-sized business owners.
Partnering with E-Risk provides Nationwide with exciting new opportunities for innovation and growth, while increasing both organizations’ ability to serve customers and distribution partners.
This acquisition enhances Nationwide’s distribution relationships and shows the company’s commitment to growing its profitable commercial management lines book through E-Risk’s wholesale network.
Nationwide property & casualty business president and chief operating officer Mark Berven said: “We’re excited to kick off the new year with a partnership that will further enhance Nationwide’s ability to provide wholesale distribution partners with deeper protection products and more value as they seek to build their business.
“Program business, administered through program managers, is a significant and growing portion of the commercial insurance marketplace. Over the long term, we believe this acquisition will allow us to hold an even greater position in this segment by making it easier for distribution partners to do business with us.”
E-Risk, based in Flanders, NJ, is a leading program manager specializing in management and professional lines products, with a distinguished portfolio of products and clients, as well as systems aligned to make it easy for wholesaler distribution partners to sell.
It also has high brand recognition, trusted wholesaler relationships and unparalleled service and technology delivery, providing ease, speed, efficiency, and expertise.
E-Risk Services president Paul Tomasi said: “For the past ten years, Nationwide has been a phenomenal partner, supporter and catalyst for the exponential growth of our company.
“This transaction illustrates Nationwide’s level of commitment to our wholesale broker distribution partners and the tens of thousands of current and future policyholders insured through the E-Risk program. We are excited about the tremendous opportunities and possibilities for our company, our customers and our employees as we join the Nationwide family.”
Terms of the purchase agreement between Nationwide and E-Risk Services, LLC, are not being disclosed. The transaction closed on January 1, 2019.
Mayer Brown served as the legal advisor for Nationwide in connection with the transaction.
Source: Company Press Release