Hudson Insurance Group and Crum & Forster (“C&F”) have announced a strategic combination of their directors and officers (“D&O”) and management liability businesses. Hudson and C&F are affiliated operations through common ownership under Fairfax Financial Holdings Limited.

C&F will transfer the following lines to Hudson's financial products unit: public, private, and not for profit directors and officers liability; employment practices liability; and fiduciary liability. James J. Hooghuis, executive vice president and chief underwriting officer for Hudson's financial products operations, stated, “This combination will significantly enhance our team and the service we provide to our producers and policyholders. This is yet another significant step for Hudson in continuing to build our management liability business.”

C&F said that it will continue to grow its crime and errors and omissions (“E&O”) capabilities. C&F's professional liability product offerings include lawyers' professional liability, technology errors and omissions, miscellaneous professional liability, cyber liability, and crime and fidelity. Along with his other responsibilities, Don Fischer, senior vice president of C&F, will lead and expand C&F's E&O business, and will assist with the integration of the D&O business into Hudson.

Hudson's D&O policies and related lines will be underwritten through Hudson Insurance Company (admitted) and Hudson Specialty Insurance Company (non-admitted). C&F's E&O and crime policies will continue to be underwritten through United States Fire Insurance Company and North River Insurance Company (admitted) and Crum & Forster Specialty Insurance Company (non-admitted).

Chris Gallagher, president and chief executive officer of Hudson, stated, “This transaction makes a great deal of sense for Fairfax and our partners as it provides more clarity, scale, and focused resources to the business.”

Steve Mulready, chief operating officer of C&F, stated, “This is an intelligent move between operations within the Fairfax family. Clients want dedicated teams of underwriters and claims professionals in this highly active segment of the market. C&F will continue to build on our success in key areas of the professional liability marketplace, including segments such as E&O for law firms and other professional specialties, as well as various environmental classes. C&F has talented underwriting staff members and strong producer relationships in this arena.”