Nationwide said it has acquired E-Risk Services LLC, a privately held program manager specializing in management lines products.
Neither side is disclosing financial specifics of the deal, which closed on Jan. 1, 2019.
Ohio-based Nationwide said that the purchase of New Jersey-headquartered E-Risk Services will help enhance its excess & surplus lines business. In the release announcing the deal, Nationwide explained that its focus on growing in management lines and in the programs space complements E-Risk’s focus as the organizations partner to provide value-added products and services to small and medium-sized business owners.
Nationwide said the deal increases both companies’ ability to serve customers and distribution partners and shows its commitment to growing its profitable commercial management lines book through E-Risk’s wholesale network.
Mark Berven, president and chief operating officer of Nationwide’s P/C business, said the acquisition is a strategically important move.
“Program business, administered through program managers, is a significant and growing portion of the commercial insurance marketplace,” Berven said in prepared remarks. “Over the long term, we believe this acquisition will allow us to hold an even greater position in this segment by making it easier for distribution partners to do business with us.”
Paul Tomasi, president of E-Risk Services, noted that Nationwide has been a business partner and supporter of his company’s growth for about a decade. He said the deal reflects the insurer’s long-term commitment to what E-Risk Services has built.
“This transaction illustrates Nationwide’s level of commitment to our wholesale broker distribution partners and the tens of thousands of current and future policyholders insured through the E-Risk program,” Tomasi said in prepared remarks. “We are excited about the tremendous opportunities and possibilities for our company, our customers and our employees as we join the Nationwide family.”
Sources: Nationwide, E-Risk Services