by Gwen Moritz
Posted 3/14/2012 10:36 am
Updated 3 years ago
Stephens Insurance Inc. of Little Rock has purchased Hoffman-Henry Insurance, also of Little Rock, in a deal that takes effect on Thursday, executives of both companies confirmed Wednesday morning.
The insurance agency subsidiary of Stephens Inc. bought the Hoffman-Henry corporate entity and will continue using the Hoffman-Henry name, Stephens Insurance CEO Marty Rhodes told ArkansasBusiness.com.
Rhodes would not reveal how much Stephens paid for Hoffman-Henry. Ron W. Adams, president of Hoffman-Henry, said Stephens had approached his company about the deal.
Approximately 15 of Hoffman-Henry's 22 employees will make the move to new ownership, Rhodes said, including Adams, EVP Richard W. Henry and Adams' brother, Wes Adams, who works in the Fayetteville office.
Some Hoffman-Henry agents - Rhodes referred to them as "producers" - will be moving to other agencies as part of the transition.
Hoffman-Henry also has offices in Pine Bluff, Searcy and Fort Smith, but Rhodes said Stephens would probably not keep all five offices open.
The acquisition is the second of the year for Stephens Insurance, which bought the book of business of Grace Group of Little Rock in January.
Stephens was the second-largest insurance agency in the state on Arkansas Business' most recent list, which was ranked by premium written in 2010. Hoffman-Henry, established in its current form in 1983, was No. 9. Combining their 2010 premium, $357.4 million and $36.8 million respectively, and the undisclosed premium of the Grace Group puts Stephens Insurance in position to threaten top-ranked Regions Insurance Inc., which wrote $404.1 million through its Arkansas group offices in 2010
Rhodes said Stephens Insurance has also enjoyed strong internal growth, and he said its annual premium will now be "well over $400 million."