Employers sold servicing and renewal rights of its direct written policies to the same broker
Employers Direct Corporation has sold the assets of its employee benefit consulting subsidiary, Plenary Insurance Services (Plenary) to Encino-based, GNW-Evergreen Insurance Services, an insurance broker.
The merger is expected to double GNW-Evergreen’s benefit revenues. With the addition of Plenary’s offices and staff in San Diego and Seal Beach, and representation in Northern California, the transaction is likely to expand GNW-Evergreen’s market reach throughout California.
In addition, Employers Direct following its earlier announcement that they have discontinued writing on a direct basis and will be marketing their insurance policies through independent agents and brokers. The company has sold the servicing and renewal rights of its direct written workers compensation insurance policies to GNW-Evergreen.
Andrew Forchelli, chief operating officer of GNW-Evergreen, said: “At a time when California’s middle market businesses are struggling to find ways to survive and prosper in today’s distressed economy. we are fortunate to have Plenary’s top caliber producers and account managers on our team and we are now extremely well positioned to help our clients through these troubled times of rising healthcare costs and shrinking budgets.”
James Little, CEO of Employers Direct, said: “We believe, over time, Plenary’s ability to implement wellness programs at the workplace that attack obesity and other major cost drivers of both workers’ comp and healthcare will have a positive effect both for our policyholders and our own financial success.”
“However, now that Employers Direct will be distributing it workers’ compensation products through independent agents, it was a strategic necessity to find the best possible home for Plenary with a leading insurance broker. We could not be more pleased that Plenary will now be a part of GNW-Evergreen, one of California’s elite insurance agencies and will be able to continue to serve our policyholders and other clients of GNW-Evergreen,” he added.