Chubb to Purchase Wellington Personal Insurance

N/Aany%> of Europe S.A. says it has reached an agreement in principle with Wellington Underwriting PLC, to purchase the business operations of Wellington Personal Insurance Limited. As a further part of the transaction, Chubb has acquired and will continue to occupy Wellington's Witney, Oxfordshire, UK premises.

When the deal is finalized, Wellington's 14,000 policyholders are expected to transfer, on renewal, to Chubb's Masterpiece program, which provides comprehensive insurance for homes, contents, travel and personal liability. The Chubb Masterpiece and Wellington Gold policies are similar in scope.

The companies believe the integration will go smoothly because, they say, Wellington is known in the UK personal insurance market as an innovative, specialist insurer and, like Chubb, has a reputation for adding value for its policyholders.

"This transaction represents a bringing together of like minds," says John Sims, Chubb's UK and Ireland personal lines manager. "There is great synergy between the Chubb and Wellington approaches. We were attracted to Wellington's focus on customer value and broker service qualities, which we have always been committed to at Chubb.

"Together we will work closely with Wellington's 800 brokers to ensure a smooth transition, with no disruption to policyholder service. We will endeavor to leave existing broker/underwriter relationships intact. We are confident that the current Wellington policyholders and their brokers will be reassured by our similar philosophies, plus Chubb's comprehensive coverage, financial strength and outstanding service," adds Sims.

In addition to more than 10,000 high value household policies, this transaction brings new products to Chubb. Specialist country estates and high value motor cover will complement the existing Chubb UK Masterpiece portfolio. "These products will further differentiate Chubb as a leader in the upscale personal lines marketplace," says Sims.

Chubb currently works with more than 250 brokers through its six regional UK branches. Through this transaction, Chubb will extend a personal lines agency to all Wellington brokers more than doubling its broker force.

"As with Wellington, our success to date has been largely driven by close relationships," comments Bill Namacher, Chubb's manager for UK & Ireland. "Compared to our peers, we are uniquely positioned to grow this business through our regional branch network, and to enhance this growth potential, we're increasing the number of business development staff across the UK. We also hope to see commercial lines opportunities arise from the many new Masterpiece relationships. In many ways, this transaction will serve as a springboard for Chubb in the UK."

Both the Wellington and Chubb personal lines operations are staffed by approximately 40 people. Chubb anticipates that the combined operation will require at least 85 staff, which highlights Chubb's commitment to long-term growth in the UK market.