Dallas-based managing general agent U.S. Risk Insurance Group has acquired Lighthouse Underwriters, in Annandale, Va., the companies announced today.
Terms of the transaction were not released. Lighthouse is a program underwriting company that works with select industry groups.
U.S. Risk, a privately held firm, is a wholesale brokerage as well as a MGA.
Under the terms of the agreement, Lighthouse will become an operating division of U.S. Risk Insurance Group, but will retain the Lighthouse trade name and continue to create and manage specialty insurance programs and market them through retail insurance agents and brokers.
The companies said Art Seifert will remain CEO of Lighthouse, while assuming the additional title of president of U.S. Risk Underwriters. He will relocate to Texas. Sean Gormley, currently chief operating officer of Lighthouse, will be promoted to senior vice president and be responsible for the day-to-day operations of Lighthouse.
"As part of U.S. Risk, Lighthouse will gain scale and access to greater resources and stable insurance markets," Mr. Seifert said. "With U.S. Risk's established underwriting facilities, we will be able to launch and support more new programs. Our goal is to have Lighthouse roll out four to five new programs in 2006."
Randall Goss, chairman and CEO of U.S. Risk, said the two firms aim to grow combined premiums to $1 billion over the next five years and "make U.S. Risk one of the largest and most profitable MGAs in the country."
The combined companies said they will have more than $400 million in premium. U.S. Risk and Lighthouse said also they have little overlap in program specialties and distribution, providing opportunities for the two companies to complement each other.
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