Mergers, acquisitions can benefit agencies, clients

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The melding of small, local insurance agencies with larger companies through merger or acquisition can be a positive thing, according to local agencies that have experienced it. Small agencies that merge with or are purchased by larger companies often benefit with the addition of more services and facilities to serve their customers.|ret||ret||tab|

One example is Gallagher-Morris Insurors at 1650 E. Battlefield Road. The Springfield agency was known as Man-Morris Insurors Inc. until November of 1998 when it merged with the Chicago-based, publicly traded Arthur J. Gallagher Company, which has its regional office in St. Louis. |ret||ret||tab|

Division President Jerry Sparks said Man-Morris sold to Gallagher because the company offered a fair price that was tax deferred.|ret||ret||tab|

"The employees here in Springfield run the company, but we have the marketing capabilities of a much larger company, as well," Sparks said.|ret||ret||tab|

Sparks added that he hasn't heard any negative comments from other insurance agencies about the buyout. "In fact, most companies say Tell them about us.'"|ret||ret||tab|

Sparks said he believes there were a number of reasons why Arthur J. Gallagher Company wanted to buy a Springfield agency.|ret||ret||tab|

"We have a very stable economy, a good insurance business here, and this is one of the hottest growing towns," Sparks said. "The Arthur J. Gallagher Company wants to have a presence here because of the quality of business and the size of Springfield."|ret||ret||tab|

He added that Gallagher would have a presence in Springfield even if it hadn't bought out Man-Morris. "They were getting Springfield accounts without even having an office here," he said. |ret||ret||tab|

It was more than three years ago that Little Rock, Ark.-based Rebsamen Insurance acquired locally owned Thomison Insurors, 1111 S. Glenstone Ave.|ret||ret||tab|

Senior Vice President Mark Patrick said with the purchase of Thomison Insurors, Rebsamen now owns four offices. The other three are located in Arkansas.|ret||ret||tab|

Patrick was an employee of Thomison Insurors prior to the acquisition and stayed with Rebsamen.|ret||ret||tab|

"Rebsamen entered this market because there's a good base of business accounts here and a good economy," he said.|ret||ret||tab|

Patrick said the company believes it can bring additional resources to its clients that include "more markets, more leverage and risk management expertise."|ret||ret||tab|

In addition to Rebsamen, five other agencies looked at Thomison Insurors with the intent to purchase the Springfield agency.|ret||ret||tab|

"We chose Rebsamen because a lot of their business philosophies were the same as ours," Patrick said. "We decided to merge to enable us to bring more services to our clients."|ret||ret||tab|

He said insurance companies are looking for larger agencies to provide some of the services agents used to provide, like loss control and a claims department.|ret||ret||tab|

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