GNW-Evergreen Insurance Services L.L.C. has agreed to acquire the assets of eDirect Insurance Services Inc. from Employers Direct Corp.
GNW-Evergreen, Encino, Calif., an insurance broker, also is acquiring the servicing and renewal rights for the directly placed workers’ compensation insurance policies of Employers Direct Insurance Company.
EDirect, which does business as Plenary Insurance Services, and Employers Direct Insurance are subsidiaries of Employers Direct Corp., Agoura Hills, Calif.
Employers Direct, a unit of Alleghany Corp., New York, has been writing workers’ comp insurance in California and other western states.
Employers Direct has had difficulty writing profitable workers’ comp business in California at current prices, and it announced plans earlier this year to drop direct workers’ comp sales and focus on selling coverage through independent agents and brokers.
Employers Direct says it is selling the San Diego benefits consulting business and the directly placed workers’ comp business to GNW-Evergreen because those operations would be a poor fit with its new distribution strategy.
A deal price was not immediately available.
In addition to a main office in San Diego, Plenary Insurance has offices in Seal Beach, Calif., and representatives in northern California.
The firm has been designing and managing employee benefits programs for about 300 Employers Direct client employers.