Publisher's Profile

Virginia Business
December 2005

Name: Priscilla G. Hottle
Title: President, USI DC Metro
Birthplace: Washington, D.C.
Raised in: Northern Virginia
Current residence: Warrenton
Years with firm: 25

Name: F. Dudley Fulton
Title: President and CEO, USI Mid Atlantic Region
Birthplace: Columbia, S.C.
Raised in: Martinsville
Current residence: Virginia Beach
Years with firm: 21

On Jan. 31, Patterson//Smith joined USI Services Corp. Founded in 1994, USI is a leading distributor of insurance and financial products and services to businesses throughout the United States. USI is based in Briarcliff Manor, N.Y., and operates 73 offices in 19 states. On March 31, USI’s Alexandria office merged with Patterson’s Falls Church location to become USI DC Metro. As president, Hottle is responsible for an $18 million-plus operation and 80 associates. Fulton serves as the regional CEO for USI’s Virginia, Georgia and Pennsylvania operations and is a member of USI’s corporate executive board. Virginia Business spoke with the two executives about the merger and the industry.

Q: Tell us what the past 12 months have been like for the insurance industry?
Fulton: Excluding the catastrophic events of Hurricanes Katrina and Rita, the past 12 months have been strong for our company and our industry, but there have been challenges. New York Attorney General Eliot Spitzer dominated the insurance world as he filed suits within the industry over allegations of bid-rigging and collusion. The financial strength of insurance carriers was a critical topic of conversation as well. The Washington, D.C., area has encountered unique issues concerning terrorism exposure and coverage. Obtaining and writing protection continued to be challenging for clients located in certain high-profile areas.

Q: What does the immediate future look like for your industry?
Hottle: The insurance market has softened in 2005. To clients this is good news as renewal premiums will likely remain flat or decrease. As an agent, this is tough because as more carriers vie for a client, they need to make sure companies are providing appropriate coverage necessary to protect their customer’s assets. Additionally, carriers may become unrealistic in their premium quotes and not adequately cover their exposure. This causes financial loss for the carriers, which ultimately becomes detrimental to the customer as carriers drop out of the “playing field,” thus reducing competition.

Q: What is your biggest challenge going forward?
Hottle: Recruiting and retaining quality associates within the insurance industry is huge locally and nationally. USI is committed to providing clients with talented, qualified and dedicated professionals. [Company officials] continually strive to develop and improve their corporate environment and offerings to attract the most capable associates possible.

Q: What is USI’s business focus in Virginia?
Fulton: Our target is the middle market and our mantra is “cross sell.” We strive to provide all forms of insurance/employee benefits to our clients. The areas we specialize in include transportation, government contractors, restaurants, building service contractors, construction, condominiums, technology and not-for-profit organizations.

Q: With almost a year under your belt, tell us how the merger has gone?
Hottle: Selling Patterson//Smith to USI was an accomplishment for both Patterson//Smith and USI. Patterson had been “courted” for years, but Frank Patterson and his board were adamant they not sell unless the “fit” was right. USI brings the strength, power and clout that characterizes large national brokers. However, USI values the reputation, integrity and relationships Patterson// Smith has developed and continues to cultivate. USI provides added value and product enhancements to Patterson// Smith’s client base through their diversified line of products and benefits.
Fulton: For the merger to work, it was important that USI’s culture align with Patterson//Smith’s culture. Family is our priority; everyone knows this, and everyone chips in to help each other overcome the obstacles that pop up in our everyday lives. We work as a team, sharing each others’ burdens. USI embraces this philosophy as well; we (both) just returned from a company gathering in which spouses were encouraged to attend and participate in the meetings; their insight into our core goals is paramount to our long-term success.