- Acquisition Expands BISYS Potential in
Commercial Property/Casualty Insurance Marketplace -
NEW YORK, Nov. 10 /PRNewswire-FirstCall/ -- BISYS, a leading provider of
business process outsourcing solutions for the financial services sector,
today announced its acquisition of Florida-based USA Insurance Group, a
leading managing general agency (MGA) serving the commercial property and
casualty (P&C) insurance marketplace.
This acquisition complements BISYS' March 2003 acquisition of California-
based Tri-City Brokerage, which marked BISYS' strategic entrance into the
commercial P&C marketplace and positioned it as the nation's third largest
independent wholesale broker of commercial P&C insurance. The acquisition of
USA Insurance Group broadens the product and geographic reach of BISYS' P&C
offering, and complements and significantly expands its existing MGA platform.
Founded in 1978, USA Insurance Group works with leading carriers and re-
insurance companies to develop and market specialty insurance products that
are distributed by a national network of more than 1,100 retail agents. These
specialty products primarily support the transportation industry, with
insurance products for commercial trucking, charter buses, limousines, and
contract school buses. During calendar year 2002, the specialty products
created by USA Insurance Group generated more than $326 million in policy
premiums.
According to Dennis Sheehan, president and CEO of BISYS, "The acquisition
of USA Insurance Group fundamentally supports the growth strategy established
when we entered the P&C marketplace earlier this year with the acquisition of
Tri-City Brokerage, and is a natural and complementary addition to our P&C
distribution platform. This acquisition increases our market presence and
potential in the P&C distribution marketplace, broadens our product offering
and provides significant cross-sale opportunities. USA Insurance Group's
niche in the transportation industry also represents a growing segment of the
P&C marketplace that historically generates exceptionally high renewal rates
and recurring revenue."
John Hahn, president of Tri-City Brokerage, said, "We believe the
opportunity to offer the specialty products developed by USA Insurance Group
to Tri-City Brokerage's network of approximately 1,200 retail brokers and
agents, while introducing Tri-City's wholesale brokerage capabilities to USA
Insurance Group's network of more than 1,100 retail agents, will generate
significant cross-sale opportunities. We plan to leverage our complementary
national distribution platforms, which collectively generated policy premiums
of more than $800 million last year, and our expanded product offering to
maximize the growth opportunities in the P&C marketplace."
Dick Love, founder and president of USA Insurance Group, said, "Joining
BISYS will provide the unique opportunity to leverage the respective
distribution platforms of USA Insurance Group and Tri-City Brokerage to create
a leading full-service solution for the evolving needs of commercial P&C
brokers and agents nationwide. We see strong cross-sale potential and an
opportunity to expand our specialty product portfolio beyond the
transportation industry."
USA Insurance Group will operate as part of BISYS Property/Casualty
Insurance Services, and maintain its offices in Melbourne, Florida.
About BISYS Property/Casualty Insurance Services
BISYS is the nation's third largest independent wholesale broker of
commercial property/casualty (P&C) insurance, linking a national network of
approximately 1,200 retail brokers and agents with the products manufactured
by approximately 60 P&C insurance carriers. BISYS facilitates the entire
distribution process with extensive wholesale brokerage capabilities,
including access to a broad product portfolio, access to experienced wholesale
brokerage specialists, advanced case design, and sophisticated system
capabilities. During its fiscal year 2003 (ended June 30th), BISYS brokered
the sale of commercial P&C insurance representing approximately $550 million
in premiums.
About BISYS
The BISYS Group, Inc. (NYSE: BSG), headquartered in New York City,
provides business process outsourcing solutions that enable investment firms,
insurance companies, and banks to capitalize on convergence by entering new
segments of the financial services industry. BISYS currently supports more
than 22,000 domestic and international financial institutions and corporate
clients through three business units. Its Investment Services group provides
administration and distribution services for approximately 370 clients,
representing approximately 2,100 mutual funds, hedge funds, private equity
funds, and other alternative investment products with approximately $700
billion in assets under administration. BISYS' largest group also provides
retirement services to more than 17,000 companies in partnership with 40 of
the nation's leading banks and investment management companies, and offers
analytical research and competitive intelligence through its Financial
Research Corporation (FRC) subsidiary. Through its Insurance and Education
Services group, BISYS is the nation's largest independent distributor of life
insurance and the premier provider of the support services required to sell
traditional and variable life, long-term care, disability, and annuity
products. BISYS is also the nation's third largest independent wholesale
broker of commercial property/casualty insurance. This group complements its
insurance distribution services with a comprehensive compliance management
solution that supports insurance and investment firms and professionals with
more than 215 certification and continuing education training courses, and a
sophisticated suite of products and services that automates the entire
licensing process. BISYS' Information Services group supports approximately
1,450 banks, insurance companies, and corporations with industry-leading
information processing and imaging solutions, turnkey asset retention
solutions, and specialized corporate banking solutions. Additional
information is available at http://www.bisys.com.
Except for the historical information contained herein, the matters
discussed in the press release are forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially, including
but not limited to economic, competitive, governmental and technological
factors affecting the Company's operations, markets, services and related
products, prices and other factors discussed in the Company's periodic filings
with the Securities and Exchange Commission.
SOURCE The BISYS Group, Inc.
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Related links:
http://www.bisys.com
Company News On-Call:
http://www.prnewswire.com/comp/851938.html
CONTACT:
Dennis Sheehan, President and Chief Executive
Officer of The BISYS Group, Inc., +1-212-907-6081
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