BrickStreet Insurance, West Virginia’s first private workers’ compensation carrier, has finalized the purchase of the workers’ compensation block of Pennsylvania-based HM Insurance Group, which will include $120 million in premiums.
“This move will make us the third largest workers’ compensation carrier in Pittsburgh,” BrickStreet’s Chief Office Executive Greg Burton said.
He said this means that BrickStreet will be adding over 115 employees in Pittsburgh. They will officially become part of BrickStreet on Aug. 1, and are hoping to have all of those employees moved to the regional office in Pittsburgh by the end of the year.
“The company will continue to provide great customer service. If someone was a policy holder through HM, nothing’s going to change. They’ll still be working with the same claim adjusters and underwriters,” he said.
Other than who owns the company, he said there are no planned changes at the moment.
“We are dedicated to maintaining the current local service delivery model that agents and policyholders have come to expect. We will continue to use HM’s established agent distribution in Pennsylvania to deliver on the BrickStreet promise of superior solutions and service,” Burton said.
Matt Rhenish, president and chief operating officer at HM Insurance Group, said that the sale to BrickStreet is a win-win situation. He said that the workers making the move to BrickStreet are prepared.
“Our workers’ compensation employees will move over to BrickStreet, bringing with them a deep knowledge of the market, ensuring both continuity and a smooth transition,” he said.
Burton said that their strategy for workers’ compensation matches well with the current HM workers’ compensation service model.
“Our results-based strategy for workers’ compensation aligns with the goals of our organization with outcomes that meet our agents’ and policyholders’ business needs,” he said.
Burton said Brickstreet has $260 million in premiums in 12 states and Washington, D.C., and now they will hold $380 million in premiums.
“This allows us to diversify our book of business. We will be able to continue to grow as a regional carrier,” he said.
Burton said that BrickStreet is a “stable, profitable, competitive company” with the capability to expand in Pennsylvania while maintaining business activities elsewhere.
“We have a full range of specialized services available to help eliminate workplace injuries and reduce the cost of doing business,” he said.
BrickStreet is a mutual company owned by its policyholders with headquarters located in Charleston. The company is one of the largest writers of workers’ compensation coverage in the region. It developed from the remnants of the state-run workers’ compensation program when West Virginia leaders moved toward privatization in 2006.
HM Insurance Group is headquartered in Pittsburgh and is a recognized leader in risk management. The company’s product portfolio also includes managed care reinsurance that is marketed under the brand RBS RE and workers’ compensation that is sold exclusively in Pennsylvania.
