Marine Insurers Merge To Expand Capacity For U.S. Underwriting

The Marine Office of America and Appleton & Cox, two large marine insurance organizations, merged as of January 1 to form what is described as the nation's largest underwriting organization with annual premiums in excess of $100-million.

John B. Ricker Jr., president of the Marine Office of America said that formation of the new company was designed to expand United States underwriting capacity for international marine insurance risks.

Mr. Ricker will serve as chairman and chief executive officer of the new company, Marine Office-Appleton & Co., Inc., and Fred Thieringer Jr., president of Appleton & Cox will become president.

In announcing the merger Mr. Ricker noted that a capacity problem existed in the marine insurance business, with underwriters lacking the reserves necessary to accommodate risks that are constantly growing. One of the objectives of the new company, to be known as M.O.A.C., will be to invite other companies into the field.

There are many companies in the interior which have reserves but have not participated in such business because of a lack of expertise, he explained. Small companies with limited capacity and personnel will now be able to share in this growing market. M.O.A.C. is prepared to represent these companies, making available its underwriting experience and offering participation in a balanced book of business.

The underwriting coverage will include cargo, commercial hull, pleasure craft, protection and indemnity - ocean and inland, marine casualty and commercial inland marine.

The new corporation will initially represent the Continental Insurance Companies, the Glen Falls Group, the Hanover Insurance Group, Phoenix of London Group and the Tokyo Marine & Fire Insurance Co., Ltd.

The new company will maintain 30 offices in the United States and Canada staffed by marine specialists, and a network of underwriting and settling agents abroad to serve United States producers and insurers, he said. Mr. Ricker indicated the company planned to make a major thrust in increasing the amount of business written abroad.