LCTA Workers’ Comp (LCTA) announced this week that it is continuing its growth strategy with the acquisition of Risk Management Resources and the creation of a new subsidiary, LCTA Specialty Insurance Company. These announcements come on the heels of its expansion to write business in Mississippi and Arkansas, and its conversion to a casualty insurance company in early 2016.
Risk Management Resources has been rebranded as LCTA Risk Services Inc., and is available to agents, customers and other businesses interested in improving the health and safety of their employees. Risk Management Resources was the third party administrator (TPA) for LCTA prior to the acquisition, but the advantage of bringing those services fully in house goes beyond that.
“Risk Management Services wasn’t just a TPA, it’s also a managing general agency, MGA,” Troy Prevot, LCTA’s Executive Vice-President said. “The TPA/MGA combination, both licensed and insured, gives us the flexibility to provide additional services to insureds, self-insureds and working with insurance companies.”
Further, the new LCTA Risk Services entity will involve staff integration and the pair are housed in the same building. “This allows us to work closely together as partners rather than the previous situation where it’s a TPA working for an insurance company. There will be integration of the staff that wasn’t possible before.”
According to the announcement, the creation of LCTA Specialty Insurance Company will allow more choices for its agents to cover their insureds. LCTA Casualty will continue to provide the high-level service and coverage for which it is known. It will also continue to pay dividends to qualified policyholders.
“Each step we take is to fulfill our core mission to provide excellent coverage and services to our customers,” Melissa Campesi, CEO of LCTA, said. “We are committed to leading by example and showing that LCTA is what’s right with workers’ comp.”
LCTA is continuing to eye other markets as it sees opportunities to expand where it makes sense.
For this particular move, Prevot said that he was excited about the potential for “diversification” and credited the Board of Directors working closely with executive management.