News

Atlantic Charter Insurance Company to Buy Harvard Pilgrim Workers’ Comp Unit

BOSTON – Harvard Pilgrim Health Care (HPHC) has signed an agreement selling off its workers’ compensation operation, the wholly owned subsidiary FirstReturn Insurance Co., to Atlantic Charter Insurance Company.

The Best Match

Harvard Pilgrim, which has recently had significant financial troubles with its health coverages, will focus efforts solely on its health segment. “Given this decision, it was crucial that we find a buyer that would offer FirstReturn policyholders financial stability and quality service. Atlantic Charter Insurance Company proved to be the best match,” said Tom Todorow, vice president of financial operations at HPHC.

FirstReturn has written over $10 million in premiums since its inception in 1998, (see The Standard, Jan.30, 1998). “This acquisition will solidify Atlantic Charter Insurance Company’s leadership position in the marketplace and underscores our commitment to the agent and broker community,” said Mitchel Weisman, executive vice president of Atlantic Charter Insurance Company.

Weisman told the Standard that the purchase of FirstReturn is a very positive step to achieving Atlantic Charter Insurance Company’s underwriting goal. “We are dedicated toward writing workers’ comp, and we’re not going to back away from that. We are in a better position than other carriers because we are able to maintain the strategy of our service,” he said.

Strict Underwriting

Having consistently increased underwriting profits since its inception in 1991, Atlantic Charter Insurance Company’s policyholder surplus has steadily grown from $15 million in 1996 to over $50 million to date. The company’s assets are estimated at $100 million. Mitchel said the Company attributes this success to their strict underwriting approach and superior loss ratios.

The company started offering workers’ compensation to nursing homes, and currently covers the healthcare, plastics, general manufacturing, and metal workers industries. In 1996, the company considered offering additional coverages, (see The Standard Feb.23, 1996), and this year added employment practices liability insurance (EPLI) to its line. “There are a lot of commonalities between workers’ comp and EPLI,” said Jacquie Willett, director of marketing for Atlantic Charter Insurance Company. The company supports in in-house law firm whose attorneys offer coverage and liability advice to its insureds.