The Hanover Insurance Group has acquired a Vienna, Va.-based specialty insurance provider in what it calls “a significant commitment toward broadening our professional lines portfolio.”

The Hanover, based in Worcester, Mass., said it has entered into a definitive agreement to acquire the Campania Group, which also has offices in Arizona, Maryland, Nevada and Ohio. The company provides professional and general liability insurance for a range of healthcare providers, including durable medical equipment suppliers, behavioral health specialists, eldercare providers and podiatrists.

The company has served the specialty healthcare insurance market, namely in the field of affinity group marketing and the development and marketing of property-casualty insurance programs for trade associations representing the healthcare industry. The Campania Group is admitted in 21 states, as well as Washington, D.C.

A Hanover spokeswoman told IFAwebnews.com that the company will retain “nearly all” Campania employees as a result of the acquisition.

Neither company disclosed the terms of the transaction, which is expected to close prior to the end of the first quarter.

‘A significant step’

The Hanover said the transaction reaffirms its commitment to continue to provide specialty insurance solutions to its partner agents and also represents “a significant step” in the company’s commitment to offer a range of products for the healthcare industry.

Frederick H. Eppinger

“We are excited to add the Campania Group to our growing suite of industry and niche solutions,” said Frederick H. Eppinger, chief executive officer of The Hanover, in a statement. “At the same time, the acquisition represents a significant commitment toward broadening our professional lines portfolio.

Through the continued strategic expansion of our capabilities into the healthcare segment, we are offering our agent partners even more distinctive products and solutions, helping them to strengthen their competitive position in their markets and to grow their businesses while we grow our own.”

Dennis R. Santoli, president and founder of Campania, said his firm is “thrilled” to be joining The Hanover.

“In the last 17 years, we have proudly established Campania as an innovative leader for general and professional liability coverages to the healthcare industry,” he said. “We are confident that the combination of our experienced underwriters, claims managers and risk managers, coupled with The Hanover’s experience, resources, and independent agency network, will help us to be even more successful over the long term.”

The Campania acquisition follows The Hanover’s recent announcements that it has expanded to the west and entered into a renewal rights agreement with OneBeacon Insurance Group, acquiring access to $400 million in small- and middle-market commercial business at renewal, and expanding its segment, niche and industry program business.

Ratings implications

The Hanover Insurance Group, Inc. is the holding company for a group of insurers that includes The Hanover Insurance Co., also based in Worcester, Mass.; Citizens Insurance Co. of America, headquartered in Howell, Mich.; and their affiliates, offering property-casualty products and services.

The pending transaction has led A.M. Best to place the financial strength rating of “B” (Fair) and issuer credit rating of “bb” of Campmed Casualty & Indemnity Co. of Maryland, based in Brunswick, Md., under review with positive implications.

Campania is the parent company of Campmed as well as its subsidiary, Health Facilities Insurance Corp. Ltd. (HFIC), of Hamilton, Bermuda, which also had its ratings placed under review with positive implications.

The ratings of Campmed and HFIC will remain under review pending regulatory approval, including the Maryland Insurance Administration’s review, and the successful closing of the agreement, A.M. Best noted.