Twin Cities Insurance Co. Acquired by CBIZ
Cleveland-based business consultancy CBIZ, Inc., announced Monday that it acquired Minneapolis-based Associated Insurance Agents (AIA) for an undisclosed sum on May 3.
AIA is an insurance brokerage agency that specializes in property and casualty insurance, personal lines, and health benefit insurance for clients primarily in Minnesota, Wisconsin, and Nebraska. It has 32 employees and generated $3.8 million in revenue over the past year, according to CBIZ. Established in 1982, AIA has worked most extensively in the auto service, banking, and construction industries.
CBIZ consults businesses on how they can better manage their finances and employees. It provides services in accounting, internal audits, mergers and acquisitions, and valuation procedures.
“We have been searching for a partner with an excellent reputation and strong focus on client service that could bring us national capabilities,” Jeff Maas, president of AIA, said in a Monday statement. “CBIZ looks to be the perfect match for AIA clients and our associates.”
According to CBIZ spokeswoman Lori Novickis, AIA will temporarily operate under the title “CBIZ AIA,” until the company determines a permanent name change.
The company now has a strong presence in Minnesota and will be focusing on its other markets for expansion, said Novickis. Minneapolis is one of CBIZ’s 18 major markets, and the company has about 150 of its 5,400 employees working in Minnesota.
CBIZ net earnings for the quarter that ended March 31 totaled $18.3 million, or $0.37 per share, down 3 percent from $18.8 million, or $0.38 per share, during the same period in 2012. Earnings per share were $0.02 lower than what analysts polled by Thomson Reuters had expected.
Revenue, meanwhile, totaled $234.8 million, up 6.3 percent from $220.8 million in the first quarter of 2012. First-quarter revenue fell short of analysts’ projections of $237.1 million. For the full 2012 fiscal year, CBIZ saw revenue of $766 million, up from $733.8 in 2011.
“The acquisition of AIA is a continuation of our strategy to expand our property and casualty business in key locations,” Steven Gerard, CBIZ chairman and CEO, said in a Monday statement. “Together with our strong accounting services, employee benefits and payroll business already located in Minneapolis, we are even better positioned to offer our clients a full range of CBIZ’s core services and solutions.”