Applied Underwriters Founder, Steve Menzies, Acquires Insurance Companies From Berkshire Hathaway In $920mm Transaction
Omaha, NE - October 16, 2019
(October 16, 2019) OMAHA, NE -- Applied Underwriters, Inc. and its subsidiary North American Casualty Co. ("A" rated, A.M. Best), a group of diversified, national financial services companies, has been acquired by Applied's founder, Steve Menzies, joined by the Quasha Group led by Quadrant Management. The transaction, valued at $920MM, included the buyout of all other shareholders including the 81% of the 25-year-old Company's stock held by Berkshire Hathaway Inc.
Widely known for its workers' compensation programs, Applied has consistently produced industry-leading low loss ratios and high profits, and enjoys a stellar reputation for excellence in the care of injured workers. Applied serves businesses of all sizes across the United States and their hundreds of thousands of employees, working through more than 20,000 independent brokers. The Company’s operations center is located in Omaha, Nebraska. Applied currently employs 800 people throughout the U.S.
Mr. Menzies stated, "I have been pleased to have had Berkshire as a partner these many years, but the growth in Berkshire's other primary insurance operations has created increasing channel conflicts for Applied. The transaction will now allow Applied to expand with no concerns for channel conflicts." Mr. Menzies added, "The future for Applied is very bright, as construction on our new Omaha operations center at Heartwood Preserve proceeds apace and as our financial results deliver consistent profits and excellent coverage for our clients and their employees."
Mr. Alan Quasha, CEO of Quadrant Management, which has acquired the services companies of Applied, observed that the complementary relationship between the insurance and services companies will be increasingly meaningful in the future as new products and programs are developed and introduced. Mr. Quasha stated, "The combination of strengths that our experience and our enterprises bring to Applied will foster robust organic growth, as has long been Steve Menzies' approach in making Applied a national leader, and our methods of continuously improving the companies with which we are involved. We are both fully committed, motivated, and even inspired by the new Applied formula which can be realized," he said.
Applied Underwriters is a national leader in the provision of workers' compensation insurance, other lines of commercial insurance, and risk transfer and financing plans. Founded in 1994 by Steve Menzies, the Company moved its operations to Omaha in 1999. In 2005, Berkshire Hathaway took an interest in the Company and acquired an 81% share.
Today, Applied's two principal complementary divisions, primary insurance carriers and its business services group, serve hundreds of thousands of businesses and their employees across the United States.