CHARLESTON, W.Va. — BrickStreet Mutual Insurance announced Friday what CEO Greg Burton calls the Charleston-based company’s next “natural step” with information that it is joining forces with Columbus, Ohio-based Motorists Mutual Insurance Company.
The affiliation agreement will expand BrickStreet’s workers’ compensation offerings to customers in 29 states and allow the company to offer other lines of insurance, through Motorists Mutual, to its customers.
In its nearly 11-year history BrickStreet has been able to stabilize the workers’ comp market in West Virginia and offer coverage to customers in 16 states. Now it’s time to take the next step in growth, Burton told MetroNews Friday.
“It’s natural for us to go into other lines and be able to offer products and services to our customers and potentially get other customers as well through this transaction,” he said.
BrickStreet has been looking for the right partner and Burton said they’ve found one in Motorists Mutual.
“Their culture and how they do things fits nicely with us. The same culture, the same delivery and the same importance around customer service,” Burton said.
BrickStreet will protect its brand by keeping its name, staying based in West Virginia and continuing to operate its BrickStreet Foundation, all important factors, Burton said.
“The main goal is to continue to be domiciled in West Virginia, delivering the workers’ comp product out of West Virginia, managing that, and continue to help grow our employment base here and give opportunities to our employees because they are the key to our success,” Burton said.
Once the agreement receives all required approvals, BrickStreet will be in charge of Motorists Mutual’s workers’ compensation business which will likely mean additional workers in West Virginia. Burton said Friday it was too early to say how many additional workers.
BrickStreet currently has 500 workers with offices in West Virginia, Illinois, North Carolina and Pennsylvania.
BrickStreet and Motorists Mutual released the following information about the new agreement:
–required approvals and closing on deal expected by July 2017
–the two companies will have more than 1,600 employees combined
–10 offices writing insurance in 29 states
–premiums of nearly $1.2 billion
–a surplus of nearly $1.55 billion and assets of $4.5 billion
–creation of new super-regional carrier ranked in the top 20 mutual companies in the United States
BrickStreet was formed by the West Virginia Legislature in 2005 after the state decided to get out of the workers’ compensation business. The state system was losing $1 million a day and had a debt of $3 billion. That debt was paid off in 2009.