Philadelphia Insurance Companies (PHLY) has acquired the estimated $100mn-premium staffing insurance business of World Wide Specialty Programs (WWSP), with the US insurer also replacing Zurich North America as capacity provider to the MGA for the package portion of the book, The Insurer understands.
Tokio Marine-owned PHLY said the acquisition of the MGA business is the largest in its 58-year history.
Terms of the transaction were not disclosed, but sources said PHLY came in with an offer at a “healthy” multiple to buy the business outright at a time when Melville, New York-based WWSP was looking for a new carrier partner to replace Zurich.
AIG had been the long-term capacity provider for the staffing insurance program business before Zurich North America took over in recent years.
It is thought that at its peak the staffing insurance business had total in-force premium of well over $100mn between its package and workers compensation business.
PHLY is understood to be replacing Zurich paper for the in-force package book of business.
WWSP is led by CEO Dorothy Taylor, with other senior executives including president Bob Thompson.
PHLY was previously a direct competitor of WWSP with its own in-house staffing insurance book of business.
WWSP will operate as a division of PHLY and take over the insurer’s existing book of staffing business, with support from those currently working on the portfolio.
The acquired business includes industry-specific coverage including employment practices liability, auto liability and workers’ compensation to staffing firm clients and brokers.
PHLY said the deal combines the “premier staffing insurance provider” with the “leading specialty commercial insurance company” in the US.
The addition of WWSP’s suite of products will enhance its staffing insurance offering and round out its portfolio of more than 120 niche insurance products, the carrier added.
PHLY’s recently appointed president and CEO John Glomb described the opportunity to combine with a leading MGA in the staffing space as “unique”.
“The expertise and insurance solutions delivered by the World Wide team complement our existing specialty business and strengthen our service to customers. Access to their team during the pandemic this past year gives us great confidence that culturally this is a fantastic fit,” he commented.
WWSP CEO Taylor added: “The acquisition combines two formidable forces, both of us dedicated to the staffing industry, resulting in unmatched service, product offering and reach. We look forward to introducing our clients to the PHLY team and sharing our 50+ years of experience with Philadelphia brokers and their clients.”