Sale Supports Long-Term Growth Strategy for MPL and Risk Mitigation Service Provider
Boston-based Coverys has sold its wholly owned insurance agency, Coverys Insurance Services (CIS), to Arthur J. Gallagher & Co. (Gallagher) for an undisclosed sum. A full-service insurance broker that has functioned as Coverys’ captive insurance agency in Michigan, CIS specializes in medical malpractice and professional liability, predominantly servicing Michigan physician and hospital policyholders.
“After strategic evaluation of our business, we determined the need to align our Michigan distribution strategy with our nationwide model through agents and brokers,” said Joseph G. Murphy, president, and CEO of Coverys. “It was determined that the sale of CIS would allow for selective expansion of our distribution in Michigan and drive additional profitable growth.”
Coverys’ sale of CIS assets to Gallagher is final and effective immediately. While the terms of the transaction will not be disclosed, Gallagher will be an agent of record for business currently written by CIS, servicing policyholders with Coverys’ A-rated medical professional liability insurance.
“Gallagher was selected to acquire CIS because of its superior reputation and long-standing service in the insurance brokerage market,” continued Murphy. “An equally important consideration during the selection process was ensuring stability for our staff and fostering continuity of service for our Coverys policyholders. Gallagher values these relationships and is committed to maintaining excellent service for our Coverys policyholders.”