American Management Corporation has returned to the commercial insurance market place as a local, family owned and operated Managing General Agency with the purchase of two of its operating units.
Nov. 1, AMC’s wholesale operations and insurance compliance operations were purchased from Fairfax Financial Holdings, a financial holdings company based in Canada, who bought AMC in 2011.
Fairfax retained the other insurance operations to be managed by Fairmont Specialty including fuel marketers.
"It was a mutual deal," said David Grimes, CFO. "We were fortunate that Fairfax agreed to sell back the AMC name, and two of its operating units."
Fairmont Specialty will be housed at 824 Front St. and continue operating insurance operations for Fairfax. A Fairmont Specialty sign will soon replace the American Management Corporation lettering on the building, Grimes said.
AMC will move its operations to 1109 Oak St. beginning Dec. 2.
AMC first came to Conway in 1992. Stephen Strange Sr., president and CEO, sold the company to First Mercury Financial Corporation, a publicly traded company in Southfield Mich. in 2008. Then in 2011, First Mercury was purchased by Fairfax.
"The opportunity that Fairfax presented to AMC to grow these businesses is a great opportunity not only for AMC, but Conway," Strange Sr. said.
AMC will operate the wholesale insurance division under the name of American Management Corporation Insurance Services lead by Vice President Steve Strange, Jr.
AMC Insurance Services will provide wholesale insurance and community products to agents in approximately 15 states.
American Management Control Systems, lead by Vice President Vance Strange III, currently provides services to Chevron, U.S. Steel and Nabholz Construction among others on a worldwide basis, and will continue to grow in an aggressive way, Strange Sr. said.
"The AMC business model, which provided the engine for growth in the past, is very exciting and we look forward to growing this company," Grimes said.
In 1984 when Strange Sr. purchased AMC, the company had seven employees in an office in Morrilton. AMC now has about 25 employees in its office in downtown Conway, and three employees at an underwriting office in Phoenix, Ariz.
"We were able to move with us many long-term, experienced Arkansans who are ready to drive this company to excellence, and we thank Conway for all the help they’ve given us and will give us in the future," Grimes said.
(Staff writer Michelle Corbet can be reached by email at firstname.lastname@example.org or by phone at 505-1215. To comment on this and other stories in the Log Cabin, log on to www.thecabin.net. Send us your news at www.thecabin.net/submit)