Brown & Brown Grows Wholesale: Hull Buys DVUA; PRU Acquires Apex

October 1, 2006

Continuing in its acquisitions mode, insurance agency Brown & Brown Inc., through its subsidiaries Hull & Co. Inc., and Program Management Services Inc., has acquired the assets of a key wholesaler located in the Northeast and a Virginia-based broker that specializes in insurance services for public entities.

Hull & Co., Inc. has acquired commercial lines wholesaler Delaware Valley Underwriting Agency Inc., and its personal lines spin-off, Residential Underwriting Agency Inc. DVUA and RUA have offices in Pennsylvania, Massachusetts, New Jersey and West Virginia and also write business in North and South Carolina. DVUA writes in 16 states; RUA in 12. Hull will own and operate the acquired assets. The aggregate annualized revenues of the acquired entities are $15 million. DVUA and RUA will continue to operate under those brands as “a division of Hull & Company Inc.”

In the other transaction, Public Risk Underwriters (PRU) acquired Apex Insurance Agency Inc., of Glen Allen, Va., along with Apex Insurance Services of Illinois Inc. and Summit Risk Services Inc. The aggregate annualized revenues of the acquired entities are $5.7 million.

Apex Insurance Agency and Apex Insurance Services of Illinois Inc. provide wholesale brokerage, managing general agency and program administration services to public and quasi-public entities. Summit Risk Services provides claims adjusting services for the Apex business.

DVUA, RUA and Apex were subsidiaries of Penn Independent Corp., based in Hatboro, Pa., which is a member company of United America Indemnity, Ltd.

DVUA and RUA will continue to operate under their own brand names as divisions of Hull.

Apex and Summit will now operate as part of PRU, which specializes in public and quasi-public entities nationwide. President Karl Snearer and the management and staff of Apex and Summit will continue to operate in their current geographic areas.

Ed Calabrese, president and chief operating officer of Hull, said the DVUA/RUA transaction cements Hull’s position in the Northeast.

“This acquisition puts us firmly in the Northeast by combining two premier entities into one highly regarded wholesaler. It also further enhances our business in the Carolinas, with the roll-in of that DVUA business into our Charlotte office, and adds talent and products in our personal lines operation.”

“This gives us a true national presence and adds a phenomenal cadre of quality people to the Hull team,” added Robert L. McGrew, senior vice president of branch operations of Hull.

DVUA/RUA President Robert Cohen said that combining Hull with DVUA/RUA means the firms will have the ability to do both commercial and personal lines transactions, regardless of where insureds operate or are located.

“The Hull and DVUA/RUA combination gives our customers an incredible array of resources to draw from,” Cohen said.

According to Richard Hull, CEO, Hull & Company now has over 650 employees and annual premium volume approaching $1 billion.

Hull & Company Inc. is a wholly-owned subsidiary of Brown & Brown, Inc., offering a broad range of insurance and reinsurance products and services, as well as risk management, third-party administration, managed health care programs and Medicare set-aside services and programs.

Penn Independent Corporation, founded in 1947 and located in Hatboro, Pa., is a member company of United America Indemnity, Ltd., which is a specialty property and casualty insurance holding company, formed under the laws of the Cayman Islands. Through its U.S. insurance subsidiaries, it provides excess and surplus lines and specialty property and casualty insurance products and services in all 50 states. The company’s primary operation is its U.S.-based United America Insurance Group, which includes Penn-America, a writer of small commercial businesses through general agents and United National, which writes professional liability, class specific, property and casualty brokerage and umbrella/excess liability.

In addition to owning Penn Independent Corporation, its wholesale brokerage operation, United America also owns Wind River Insurance Company, Ltd., based in Bermuda, a multi-line treaty reinsurer; and Wind River Insurance Co. (Barbados), Ltd., a licensed insurance carrier.

With operations in 50 states and five nations, United America employs more than 600 people, with annual total revenues of $562 million and total assets of more than $3.1 billion.

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