Founded in 1985, FPA is an employee benefit consulting firm that designs, markets and administers voluntary insurance programs by payroll deduction for employee groups in the U.S.

David L. Eslick, U.S.I.'s chairman, president and chief executive officer, said the acquisition would make the firm one of the largest single insurance brokers of voluntary benefits.

The purchase gives U.S.I. an entry into the union and association markets where the firm does not have much penetration, said Gregory J. Morano, president and CEO of U.S.I. Specialized Benefits Division.

Previously, its voluntary benefit division, Customer Benefit Programs, offered insurance lines through employer sponsored programs for such companies as J.C. Penney, Pepsi-America and other large corporations. The business amounts to $35-to-$40 million in voluntary benefit premium per year, he said.

The acquisition of FPA "creates a more global marketplace for our producers to go out and find business," he told National Underwriter.

While the voluntary benefit insurance lines offerings primarily concentrate on life, disability and critical care insurance, they offer property-casualty personal lines businesses, such as auto and homeowners, as well.

John B. Pescitelli, president and chief executive of FPA, said the firm provides services to the education, transportation and government markets, delivering coverage to approximately one million members of professional associations and labor unions. FPA's Administration Plus service allows payment of the benefits through payroll deductions.

He said that the partnership with U.S.I. would broaden FPA's portfolio of benefits and services.

Mr. Morano said there are no plans to merge FPA into any other businesses within U.S.I.

"We love the company and we love what they are doing," he remarked. "They have unbelievable brand loyalty. We are not looking to change the way FPA operates. This is not a fold-in; it's an add-on."