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Two Montana Insurance Companies to Merge
Payne Financial Group Inc. and Western States Insurance said Monday the two companies plan to merge
MISSOULA — Two competing Missoula-based insurance companies plan to combine to form a private insurance brokerage that will serve customers in the Pacific Northwest, the companies announced.
Officials with Payne Financial Group Inc. and Western States Insurance said Monday the two companies plan to merge by the end of the year.
"We have been two strong companies following similar paths to success," said Kyle Lingscheit, president and CEO of Western States Insurance. "We are now one stronger company, ready to lead our industry into the future."
The combined companies have around 640 employees, serve 30 communities through 40 offices in Montana, Idaho, Washington and Oregon and anticipate generating $90 million in revenue in 2012.
The name of the new company has not been announced and the terms of the agreement are confidential. The new company will remain headquartered in Missoula.
Payne Financial is employee-owned. Western States is owned by Blue Cross Blue Shield of Montana, which announced Monday it was becoming part of Health Care Service Corp. Payne Financial chief operating officer Sarah Kelly said Western States employees will have an option to become owners of the combined company.
"We have an exciting road ahead as we embark on the blending of our two companies," said Brian Donahue, president and CEO of Payne Financial.
Both companies sell personal and business insurance, surety bonds and provide employee benefit planning.
Monday's announcement did not indicate how the combination will affect employees, but it said clients of both companies will retain their existing insurance policies and agents while the companies combine their operations.
Upper management teams from Payne and Western States will be "thoughtfully blended" in the coming weeks, Kelly told the Missoulian.
Payne has clients in Montana, Idaho and Washington with offices in Billings, Bozeman, Butte, Great Falls, Helena, Kalispell and Missoula along with offices in Boise, Idaho, and Spokane, Wash.
Western States has offices in 30 cities across Montana, Idaho, Washington and Oregon.
Officials with Payne Financial Group Inc. and Western States Insurance said Monday the two companies plan to merge by the end of the year.
"We have been two strong companies following similar paths to success," said Kyle Lingscheit, president and CEO of Western States Insurance. "We are now one stronger company, ready to lead our industry into the future."
The combined companies have around 640 employees, serve 30 communities through 40 offices in Montana, Idaho, Washington and Oregon and anticipate generating $90 million in revenue in 2012.
Payne Financial is employee-owned. Western States is owned by Blue Cross Blue Shield of Montana, which announced Monday it was becoming part of Health Care Service Corp. Payne Financial chief operating officer Sarah Kelly said Western States employees will have an option to become owners of the combined company.
"We have an exciting road ahead as we embark on the blending of our two companies," said Brian Donahue, president and CEO of Payne Financial.
Both companies sell personal and business insurance, surety bonds and provide employee benefit planning.
Monday's announcement did not indicate how the combination will affect employees, but it said clients of both companies will retain their existing insurance policies and agents while the companies combine their operations.
Upper management teams from Payne and Western States will be "thoughtfully blended" in the coming weeks, Kelly told the Missoulian.
Payne has clients in Montana, Idaho and Washington with offices in Billings, Bozeman, Butte, Great Falls, Helena, Kalispell and Missoula along with offices in Boise, Idaho, and Spokane, Wash.
Western States has offices in 30 cities across Montana, Idaho, Washington and Oregon.
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