Arkwright Sells Ownership Of Its Brokerage Subsidiary, Hobbs Group.WALTHAM Waltham (wôl`thăm, –thəm), city (1990 pop. 57,878), Middlesex co., E Mass., a suburb of Boston, on the Charles River; settled c.1634, set off from Watertown 1738, inc. as a city 1884. , Mass.--(BUSINESS WIRE)--Oct. 27, 1997--Arkwright Mutual Insurance Co., a Waltham-based supplier of risk management products and services, announced it has sold its brokerage subsidiary, Hobbs Hobbs, city (1990 pop. 29,115), Lea co., SE N.Mex.; inc. 1929. With the discovery (c.1928) of oil and natural gas in the area, Hobbs became one of the last great oil boomtowns in the United States. It remains a major shipping and trading center for oil-well supplies. Group Inc., to employees of Hobbs Group. The transaction was effective Oct. 24, 1997. The decision to sell the brokerage was based on strategic and investment considerations, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. William J. Poutsiaka, Arkwright's president and chief executive officer. "In previous years, Hobbs Group played a unique role for Arkwright by finding property insurance coverage with other carriers for portions of our customers' programs that were not underwritten in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by Arkwright Mutual," Poutsiaka explained. "Although Hobbs Group will continue to be an important source of production for Arkwright, this role is now performed by other brokers as well as Hobbs Group. As such, we do not need to capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. an entity to have this function performed," he said. From an investment perspective, Poutsiaka sees consolidation and change in the brokerage industry that will eventually lead to success for some firms or disappointment for others. "Firms that are successful," he said, "will, among other things, need to implement significant organizational change requiring substantial attention from both management and owners. Such a time commitment from Arkwright management would not be appropriate in light of other challenges, yet continued ownership by us precludes involvement of others who could contribute to such a transformation and success by Hobbs Group." "We are very pleased at the sale of Hobbs Group to its employees," Poutsiaka re-emphasized, "and we look forward to continuing to work with them." Arkwright Mutual Insurance Co. is a risk management partner to many large, commercial, industrial and institutional companies worldwide. Its primary services center on property risk assessment, loss control and property insurance underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. . Together with its affiliates, Arkwright has offices in 12 countries: Australia, Belgium, Brazil, Canada, France, Germany, Italy, Japan, Singapore, Spain, the United Kingdom and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CONTACT: Arkwright Mutual Insurance Co. Johanna Hetherton, 617/890-9300, ext. 3680 johanna_hetherton@arkwright.com |
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