BrickStreet Insurance: BrickStreet, Motorists Mutual to form partnership

By Max GarlandBrickStreet Insurance and Motorists Mutual have announced a formal agreement for a joint venture between the two companies that would begin in July 2017, pending approval by state insurance commissioners.If approved, the new partnership would create a super-regional carrier with $4.5 billion in assets and nearly $1.2 billion in premiums.The mutual insurance companies said in a news release that the agreement will allow BrickStreet agents and policyholders to have access to commercial insurance outside of workers' compensation, which it primarily focuses on. Motorists, which sells property and casualty insurance, would be able to provide additional classes and account sizes to workers' compensation coverage.The companies will continue to maintain their individual brands through the affiliation agreement and be owned by policyholders. BrickStreet and Motorists will remain headquartered in Charleston and Columbus, Ohio, respectively."The joint venture using the affiliation model works best because it allows BrickStreet to expand its product offerings and services, while ensuring its headquarters remain in Charleston," BrickStreet CEO Greg Burton said in the release. "We chose this framework of an affiliation very intentionally. This structure protects the BrickStreet brand, allows us to stay domiciled in West Virginia, and provides us with the opportunity to grow our company."The partnership will need approval from insurance commissioners in both West Virginia and Ohio, as well as commissioners in Iowa, New Hampshire, Wisconsin and Pennsylvania where both companies have locations. Since it is not a merger, the companies do not need approval from their policyholders.Nearly $60 million of Motorists' workers' compensation business would be managed by the BrickStreet. That would raise BrickStreet's total workers' compensation premium to $415 million, according to the release.The companies have been discussing the partnership for months and the agreement is slated to be finalized in July. If approved, it will also shake up the executive structure for both companies. Burton would become executive chairman, while Motorists President and CEO Dave Kaufman would become CEO of the joint venture.BrickStreet became West Virginia's first private workers' compensation carrier in 2006 before the market was opened for competition in 2008. This July, the company finalized an agreement to purchase HM Insurance Group's workers' compensation policies and accounts for about $120 million in premium."This is the next logical step for our growth as a company," Burton said. "We are very proud of BrickStreet's heritage in West Virginia, and we want to make sure we remain a strong, viable West Virginia company. We are continuously looking for ways to expand in order to offer additional product and service offerings for our agents and policyholders while being able to offer stable employment and growth for our staff."Reach Max Garland at max.garland@wvgazettemail.com, 304-348-4886 or follow @MaxGarlandTypes on Twitter.