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2020 Changes to Insurance Agencies in Massachusetts

Premier Shield Insurance is a full-service independent insurance agency that works as an alternative for customers of Progressive Direct, Arbella, AMICA, Safety, GEICO, Liberty Mutual, Hub International, Kaplansky, and Eastern Bank. We specializing in offering world-class customer service while finding you better prices and coverage for your Massachusetts auto and home insurance policies.

Our agency helps high-valued homeowners establish comprehensive policies for homes up to $5,000,000. Our highly-rated home insurance companies have strong financial backing and can offer guaranteed cost replacement coverage in Massachusetts & Ohio.

Quietly, while no one was looking, large Massachusetts insurance agencies (Hub International, Eastern Bank, and Kaplansky) and private equity investors via the Carlyle Group have purchased a ton of Massachusetts Insurance Agencies through their recent purchase of the Hilb Group.

This means that you’re so-called “local insurance agency” may actually be owned by a mega and global, “publicly traded” private equity company.

Who are the Big Insurance Agency Players in Massachusetts?

  • Eastern Bank
  • Hub International
  • Hilb Group/Carlyle Group
  • Kaplansky

Publicly traded or private, which is it? Both! Carlyle Group specializes in corporate buyouts taking private companies public and public companies private.

Big investors are using smaller regional companies to slowly buy up the Insurance Agency and Independent Insurance Agency channel in Massachusetts

Brian Plain Premier Shield Insurance COO

At the time of writing this, I was aware of the Carlyle Group 10/30 acquisition of Hilb but didn’t know Carlyle Group actually went public back on 5/3/2012 for $700 million. Read Carlyle Readies an Unfriendly I.P.O. for Shareholders BY STEVEN DAVIDOFF SOLOMON.

It trades under on the Nasdaq under the symbol CG. The company has weird ties to everything from the Bush & Bin Laden Families (Both the Bush Family and Bin Laden Family were Carlyle Group Investors at the time of 9/11), Leveraged Buyouts (LBOs), the US subprime mortgage crisis, US Mortgage-Backed Securities defaults ($16.6 billion), and more.

According to the company’s website:

“Founded in 1987, The Carlyle Group has grown to more than 1,775 employees, approximately $223 billion in assets under management and 33 offices across six continents by adhering to its mission of inspiring the confidence and loyalty of investors.

Carlyle Group Website

What Does This Mean for Homeowners and Auto Insurance Customers and Residents of Massachusetts?

 

It means that if you do business with an agency that “sold out” and is owned and operated by Hilb Group or Carlyle Group, (companies like Winchester Insurance or G&N Insurance) you are no longer supporting a “Local Insurance Massachusetts Agency” or small business owners in Mass. You’re supporting the big company corporate interests of globalization, private equity, and vulture capitalism.

At Premier Shield Insurance we believe that there will continue to be “buyouts” of small insurance agencies throughout the New England area.

We believe the company will eventually create an IPO for this new “Mega Insurance Agency” when Carlyle is ready to sell.

Massachusetts Insurance Agency Mergers and Acquisitions

As we end 2019 and enter 2020, we’re seeing a ton of insurance agency owners in and around Massachusetts sell their agencies to bigger companies. This type of industry consolidation typically leads to local offices closing and job layoffs for the staff at these companies.

So we posted a while back Winchester Insurance was acquired by Marsh-Kemp Insurance which was acquired by The Hilb Group which was just acquired by Carlyle Group. All of this happened in 2019. We thought Hilb was looking to be a major player, and it looks like as part of Carlyle Group they’re looking to make it a reality.

 

Which New England Insurance Agencies Sold to Hilb, Kaplansky, Eastern Bank, or Hub International?

 

According to AgencyChecklist and other news outlets, there were many Massachusetts-based insurance agencies acquisitions in 2018 and 2019. If you notice the level of service declining at one of these agencies and you would like a better alternative, give us a call today 1-774-847-7746.


RICHMOND, Va., Oct. 30, 2019 /PRNewswire/ — The Hilb Group, LLC (“Hilb”), a leading national insurance broker, announced today that it has signed a definitive agreement with global investment firm The Carlyle Group (NASDAQ: CG) for investment funds affiliated with Carlyle to acquire a majority interest of Hilb.  Hilb’s existing management team and employee shareholders are expected to remain significant shareholders.  Hilb is currently a portfolio company of Abry Partners, a Boston-based private equity firm.

PR Newswire

 

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