Breckenridge will open the commercial property program underwriting facility in its suburban Atlanta headquarters although the company will continue to operate underwriting centers in Fresno, CA; St. Louis; and Las Vegas.  The company also hired two veteran commercial property underwriters: Michael Marks as chief property underwriting officer and Jared Mathis as vice president. Both will be based in Georgia offices.

Breckenridge currently markets 10 insurance programs in specialty markets to retail insurance agents and brokers.  In a program, the broker/underwriter has the exclusive, contractual right with an insurance carrier to market an insurance product for a particular class of business. With the formation of Blue River, Breckenridge will roll out additional programs throughout 2012.

Joseph Filardo, executive vice president for programs of Breckenridge Insurance Group, the parent company of Blue River Underwriters, will head up Blue River.  Filardo said that with the formation of Blue River, “Breckenridge will be able provide greater efficiencies and expertise to its program underwriting brokerage clients and insurance carriers.”

Rick Parsons, senior vice president of Breckenridge Insurance Group said “Blue River will enable Breckenridge to accelerate its growth in the program business sector especially with the expertise in the commercial property markets that Michael and Jared bring to our organization.”

Marks joins Blue River Underwriters from a commercial insurance broker where he managed a $25 million property portfolio.  He also held executive positions with AIG and Markel.  Mathis has held underwriting and account management positions with surplus lines/excess brokerage firms and, most recently, directed a $10 million commercial property portfolio for a managing general agent/program.

“We are tremendously excited to have President Bush coming to speak to our Association,” stated Jeremy Hitzig, TMPAA President. “This President presided over some of the most challenging situations the United States has faced in its history. Insights President Bush can share about leadership in difficult times will provide value that has direct application for the business leaders and entrepreneurs in our group.”

The keynote address by President Bush is sponsored by Zurich North America Commercial’s Programs and Direct Markets business unit, which is one of the largest writers of program insurance in the U.S., and a TMPAA insurance carrier member. “Programs continue to be a core business at Zurich,” said Craig Fundum, president of Programs and Direct Markets. “Target Markets’ role in promoting and improving program business is closely aligned with our own strategy in this segment of the insurance industry. Zurich is very excited to continue its strong support of Target Markets by helping to bring President George W. Bush to this important event.”

In addition to President Bush’s presentation, the TMPAA also plans to provide the results of its comprehensive program business study and have industry speaker, William R. Berkley, Chairman and CEO of W.R. Berkley Corporation, address the group about current industry trends and projections.

The Target Markets Program Administrators Association is an organization dedicated to the unique challenges of insurance program administration. The TMPAA’s mission is to help Program Administrators conduct their business more efficiently, with greater proficiency and profitability. The organization provides its membership with an array of business and educational services including access to program carrier decision makers, best practice information and recognition, Target University, Program Marketing and Distribution, Target Programs (online portal), Industry Studies and two annual Member Meetings.

The Association’s Annual Summit with keynote speaker, George W. Bush, 43rd President of the United States and Founder, George W. Bush Foundation, and industry speaker, William R. Berkley is scheduled for October 24-26 in Scottsdale, AZ.
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Program Administrator / MGA’s interested in learning more about the TMPAA, can visit the Association Website at www.targetmarkets.com or contact Ray Scotto – Executive Director – at
(877) 347-5700 E-mail address: ray.scotto@targetmkts.com

It’s something you can’t fool with. If you mess up once–only once–your reputation dies. Even worse, you lose the pride and joy you enjoy by going to work every day.

Pride and joy! At work, you say! What an alien concept for someone deep in the morass of corporate politics or stymied by corporate silos. Pride and joy comes from a common vision. It can be very tough to be part of a company that is peopled with professionals who don’t have a common vision–or who lack a vision at all.

At Breckenridge we have pride and joy. When we formed this firm a little more than a year ago, we decided we would only associate with people of a common mind. We have walked away from acquisitions with people and organizations who don’t share our set of ethics or our culture. Indeed, we have walked away from multi-million dollar producers because we knew we just couldn’t mesh.

We like our clients and we like each other. We are working with transparency in an industry that is now backing off from those kinds of commitments. We are, in short, something of a different breed, and we like to think, a different level of professionalism.

Clients who demand a $300 bottle of wine probably don’t want to work with us. We’re looking for the kind of people who enjoy working through issues and solving tough problems. We seek people honestly excited about finding that different solution or the unique approach.

If you get charged up by your clients, challenged by the people you work with, and motivated by the process of finding meaningful solutions to risk, we are the right place for you.

The consensus among the “experts” today is that with the earthquake and tsunami, the reinsurance markets will turn.  But even with these events–and the earthquake in New Zealand–the market still has about $500 billion in surplus and reserves.  So the chance that this market-turning event will trickle down into the other markets is far from clear.  Program administrators and brokers that I’ve talked with say that unless the economy improves, exposures will continue to shrink and the current glut in capacity will remain.  That’s not the conditions needed to cause a hard market, although it may be closer to a bottom today than a year ago.

There are plenty of explanations about why prices don’t increase.  In the short term, the industry has benefited from redundant reserves which have been able to shore up earnings. And look at the economy in general–except for commodities, business has learned to live with low or no inflation and the inability to increase price. As an industry, we are much better at assessing risk today. We know exposures, probabilities and profitable pricing, as Warren Buffet just pointed out.  But we are victims, as he said, of  “testosterone-driven” CEOs who refuse to let up on their demands for increased premium volume–even if it means they know that premiums are inadequate for the risk.  So much for “underwriting discipline.”

Here at Breckenridge we see it in action all the time.  Even though the pressure to increase price is escalating with loss ratios moving up, there are some insurers out there–no names–which go to extraordinary lengths to underprice the competition to get new business–or keep accounts on the books.  The trend won’t go away.  So much for the argument that insurance execs will forgo revenues to insure ongoing profitability.  Even Buffet, who in the past suffered from some big losses in his insurance investments, saw insurance profits jump 38 percent and premium volumes rise by 10 percent.

Don’t ask us to speculate on when the market will turn–or whether it will turn. In a recent interview with SNL Insurance Daily, CEO Tracey Carragher said about the E&S markets: “Rates are not going to turn until the standard market starts hitting the wall. We are not waiting for a hard market. It is not in our plans, but it is in our prayers.”

New York-based Arsenal Capital Partners is the primary investor in Breckenridge IS, Inc.
Tracey Carragher, CEO of Breckenridge IS, said the acquisition of IPSICO is a major milestone coming at the anniversary of the company’s first year of operations. She said that “with IPSICO now a part of the Breckenridge organization, we will accelerate the growth of our wholesale brokerage operations throughout the Midwest and the United States.” Ms. Carragher said “I am thrilled Dick joined our organization. We will benefit from his exceptional knowledge, experience and expertise in the insurance brokerage business.”

Mr. Eichhorn, well known in the insurance brokerage industry, started the company 25 years ago after he left the national insurance brokerage firm Arthur J. Gallagher where he was area president.
Breckenridge Insurance Services, LLC is the insurance brokerage operations of Breckenridge IS. Breckenridge Insurance Services is a program administrator, managing general agent and wholesale broker. All of its services are available through the Breckenridge network of 14 offices throughout the United States. Its programs range from a public entity practice to programs which focus on specific specialties ranging, for example, from contractors to landscapers.

With IPSICO, Breckenridge IS, Inc. now has completed four major acquisitions or strategic investments. During the coming year, Breckenridge plans to complete acquisitions of additional specialty insurance operations in strategic markets that will be layered into the corporate infrastructure of brokerage, alternative risk, reinsurance, program administration and underwriting.

IPSICO brings a full-line of property-casualty placement and consulting services. It is the program administrator for a number of exclusive distribution agreements with major international insurance carriers.

“After growing a successful brokerage into a leading Midwestern wholesaler, it was time for me to pass the baton on to my son Michael, who will manage the operation as a part of Breckenridge, the fast growing national organization,” Mr. Eichhorn said. He will continue to work as a consultant for IPSICO and his initial assignment is to combine the public entity practices at the two companies.

In June, Breckenridge IS completed its acquisition of the Overby-Seawell Company, a specialist in lender-placed insurance and financial risk management. Overby-Seawell is based in Kennesaw, GA and will offer IPSICO products and services to its market of banks, credit unions, consumer finance and other financial services institutions. Last year, Breckenridge made a strategic investment in the Target Markets Program Administrators Assn. in Wilmington Del. and also acquired Western Pinnacle Insurance Services in Fresno, Calif. which is now part of Breckenridge Insurance Services.

IPSICO operations will continue to be based in St. Louis. The company offers primary and excess casualty coverage, executive liability and workers compensation products including primary and excess workers compensation. It also offers inland marine coverage, commercial auto and other related casualty products. Its property coverage includes earthquake, wind and flood coverage. IPSICO’s industry specialties include a construction unit and a large public entity portfolio.

IPSICO also offers alternative risk services which will become a part of Breckenridge Enterprise Alternative Risk Services (BEARS). IPSICO also owns a premium financing company.

For additional information, contact Jack Roberts at 610-952-7313.

About Breckenridge Insurance Services
Breckenridge Insurance Services is an operating company of Breckenridge IS, Inc. Breckenridge is a national underwriting manager, program administrator and insurance services firm with offices in 14 U.S. cities. It recently acquired Overby-Seawell Co., a commercial broker that specializes in lender-placed insurance products in addition to offering comprehensive financial risk management services. More information about Breckenridge is available at www.breckis.com.
In addition to programs in the public entity markets, Breckenridge offers programs for arborists, landscapers and commercial construction contractors. It also offers programs designed for a variety of industries seeking workers’ compensation and related coverage though its BreckComp company in Fresno, CA.

About CNA
Serving businesses and professionals since 1897, CNA is the country’s seventh largest commercial insurance writer and the 13th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at www.cna.com. CNA is a registered trademark of CNA Financial Corporation.

For additional information contact:
Jack Roberts at Breckenridge IS, Inc. at 610-952-7313

Breckenridge IS, Inc. operates in multiple lines of insurance distribution and services overseeing businesses in specialty wholesale insurance brokerage, managing general agencies and underwriting and insurance services. Complementing its primary focus on specialty insurance markets, Breckenridge IS offers a full-range of commercial property-casualty insurance products and insurance services. 

Overby-Seawell Company is a leader in collateral protection insurance and offers more than 20 lender-based insurance products to commercial and community banks, bank-holding companies, credit unions, consumer finance companies, acceptance companies, managing general agents, insurance brokers and agents, and insurance carriers.

Tracey Carragher, CEO of Breckenridge IS, said, “This strategic partnership will enable Breckenridge to accelerate Overby-Seawell’s growth, enhance Overby-Seawell’s national footprint with expanded geographic reach and enable Overby-Seawell to offer clients a wider range of insurance products and services.”

Larry Overby, CEO of Overby-Seawell, said that “We look forward to taking our growth to the next level as a part of the Breckenridge organization. Our operations will continue to be based in Kennesaw, Georgia and Coral Gables, Florida.”

Mr. Overby will continue as CEO along with the other members of the company’s senior management team. “We are fortunate to be able to bring Larry and his skilled team to the Breckenridge organization,” Carragher said.

Collateral protection insurance offers financial institutions critical insurance coverage, especially during difficult economic times. Policies can cover a variety of collateral ranging from vehicles to residential and commercial properties, usually in situations where coverage lapses in a mortgage or an auto loan.

Overby-Seawell Company is also an industry technology leader developing its own, proprietary collateral tracking system, which it markets separately to financial institutions and other general agents.

Additional information about Overby-Seawell can be found at www.overby-seawell.com.

Tracey has responsibilities for the overall management of Breckenridge. Her duties include setting and communicating a vision for the operation, and ensuring individual operating unit performance. In addition to setting the pace for the organization, Tracey is identifying new and synergistic business opportunities for Breckenridge.

She has deep background in many aspects of the insurance business. In her career, she has held a variety of senior executive roles with both national and international responsibilities at some of the largest and most prestigious companies in the financial services industry. Tracey had responsibility for the oversight of the wholesale and facultative brokerage divisions within Aon. In the wholesale group specifically, the divisions increased margins from less than 15 percent to more than 30 percent, while tripling revenues in less than five years. This was due to organic growth, a material consolidation effort, as well as focused acquisitions, all of them Tracey’s responsibility, and many of them her design. Included in this effort was a distinct rebranding effort that was recognized in the industry and successful in creating market stance for new and reconstituted operations. In the facultative area, she grew revenues from $2.5 million to $30 million while increasing margins from 12 to 35 percent. Efforts in the MGU space resulted in consolidation, expense reduction, and similar bottom line improvements.

Her international expansion included a move into Australia, which today is the most profitable territory. Other responsibilities at Aon included special projects for Aon’s President, including M&A, as well as troubleshooting challenged business units. Many of these units needed process reengineering and consolidation, areas that Tracey presses on her operations.

Tracey’s career highlights include her recent role as CEO of Cambridge Integrated Services (the largest TPA in America), which was part of Aon before it was spun-off to Scandent and subsequently sold to Xchanging. Cambridge remains a strategic global outsourcing firm with deep expertise in process consulting; transaction processing including mortgage application and renewal; medical billing; finance and accounting back office support; insurance claims administration and processing; inbound and outbound contact centers to support all of these activities; and other transaction processes that require knowledge-based decision making.

From 1989 to 1992, she was Divisional President with Frank B. Hall, which Aon acquired in 1993, where she managed a turnaround of a group that was unprofitable in a key market. Within one year, the division was named the firm’s “Operation of the Year;” within 14 months it had an operating margin of 30 percent; and within 18 months it had an operating margin of more than 45 percent. Tracey was Sr. Vice President at Alexander & Alexander (A&A) when acquired by Aon in 1997. While at A&A she ran operations, increased sales, designed new products and managed the marketing and actuarial consultants within its consulting unit.

Earlier in her career, she was a senior research consultant at the renowned McKinsey & Company, specifically focused on the financial services industry and building the firm’s expertise within the sector. Tracey has been named one of the “Top 50” women by Business Insurance magazine and currently serves as a judge for the Risk & Insurance magazine’s Theodore Roosevelt Workers’ Compensation and Disability Management award. A frequent speaker in different venues, Tracey is an established force within the financial services industry.

Bill Chesley is a seasoned operating company executive with over 17 years of institutional and entrepreneurial management experience, and a successful track record of leading organizations and repositioning companies for profitable growth. His success has demonstrated his ability to build, manage and motivate teams, along with form alliances and develop collaborations with strategic partners. Through Bill’s leadership and tactical planning he has lead several organizations into achieving outstanding financial gains, along with experiencing increased operational efficiency.

During 2008 Bill oversaw the operations and finance of Specialty Brokerage Services, which dovetails with his experience as Chief Operating Officer of Aon Risk Resources. Bill’s primary responsibility at Aon was to provide financial and operational oversight to the holding company, composed of wholesale brokerage, facultative reinsurance brokerage, MGUs, technology businesses and Third Party Administrators (TPAs). Additionally, he was responsible for acquisition integration and consolidation. During this time, Bill also served in several other business development roles and led various strategic initiatives including the formation of a cooperative back office to service multiple wholesale and MGU operating companies, and the combining of various TPA’s into one national service company.

Bill worked closely with Carragher in their efforts to reengineer many of the operations under their oversight. With a proven background of strong leadership and managing change, Bill was recruited by institutional investors to assume the role of CEO of a technology-based portfolio company. Bill led the firm to become the first online healthcare/insurance technology company to successfully automate a digital workers’ compensation bill submission process. This was heralded as a landmark event in the Property and Casualty related healthcare claims sector for slashing processing time by an order of magnitude. Under Bill’s leadership, the technology company’s business model was thoroughly revamped and restructured. This was accomplished by redefining and articulating the mission and strategy, rebuilding the core management team, and leading the total reengineering of the software model, which ultimately became the Company’s primary sales generation configuration.

Other executive experience includes COO of Pyramid Technologies, a Property and Casualty Technology Company that developed workers’ compensation claims administration systems for insurance carriers, TPAs, and self-insured employers. Bill was responsible for developing and implementing strategies that facilitated the company’s growth along with overseeing all of its operations and financial performance. He was credited with transforming the company from a technology-driven focus to a market-driven, solutions-oriented product company through strategic partnering that included changes to culture and staffing.

An industry veteran with over three decades of management level insurance experience, Peter is the founder and CEO of American Pinnacle Partners, Inc., an MGU with workers compensation facilities, catering to trade associations and niche markets.

From October 2001 to December 2007, he founded Nations Builders Insurance Services, Inc. (“NBIS”), a vertically integrated specialty insurance company focused on commercial and residential construction and transportation sectors. As CEO of NBIS he built the company from zero to $140 million in premium, with EBITDA of $21 million. In 2006 his organization was named 5th Hottest Company in United States by Entrepreneur Magazine.

Prior to founding NBIS, Foley’s experience included working in senior operating and financial positions for such companies as General Re, CIGNA, Sedgwick Group (now Marsh), Frontier Insurance and Unified Financial Services. His career included 11 years of international experience working from London with substantial involvement in complex reinsurance arrangements. Foley has held the senior executive role for two significant insurance restructurings; with extensive M&A expertise as well as capital raising skills in both public and private markets covering transactions from under a million dollars to $550 million.

A graduate of Franklin Pierce College, Peter Foley also has an MBA from Fairleigh Dickenson University.