Sedgwick has signed an agreement to acquire York Risk Services Group. Following the close of the transaction, the Sedgwick family will comprise nearly 27,000 colleagues.
York provides claims administration, managed care, specialized loss adjusting, pool administration and loss control solutions. It serves a variety of clients, including corporations, the insurance industry and public entities. The company has nearly 5,000 employees in more than 60 offices across the U.S.
The press release announcing the deal notes that York’s “offerings notably complement Sedgwick’s existing market capabilities.” Sedgwick, which touts its focus on technology, has completed several acquisitions over the last few years, including its acquisition of Cunningham Lindsey in April 2018. That deal added 6,000 claims handlers to Sedgwick’s rolls.
Speaking with Louisiana Comp Blog this week, York Chief Marketing Officer Maria Conry said that the company doesn’t know at this time what will happen to the Metairie office.
“The deal was a rapid process,” Conry said. “The closing [of the acquisition deal] won’t be until later this year and then we’ll have a better idea of how everything will play out. More announcements to come.”
Consolidation in the TPA marketplace for workers’ comp has accelerated in recent years, with no sign of stopping. Joe Paduda, noted workers’ comp commentator and owner of Health Strategy Associates, was quoted in Claims Journal stating ominously, “There’s no question there will be more consolidation in the industry. Workers’ comp is a shrinking business and consolidation is a foregone conclusion.”
In the Sedgwick press release, the tone was considerably more positive.
“Today’s news marks another exciting milestone in our storied 50-year history of growth,” Sedgwick president and CEO Dave North said.
While Thomas Warsop, Chairman and CEO of York explained that, “joining forces with Sedgwick will provide enhanced capabilities for York’s clients and new opportunities for our associates.”
Louisiana Comp Blog is tracking this story and will update when more information about the local office becomes available.
Image Credit: Sedgwick logo via PR Newswire