Hylant
Group Structures Environmental Liability Transfer for
PCB
Contaminated Site
CLEVELAND, Ohio -
May 31, 2005 - Hylant Group, a Toledo, Ohio
based independent insurance broker, in conjunction with
AIG Environmental, a member company of American International
Group, and TRC Companies has completed the placement
of an insured third party environmental liability transfer
for Tecumseh Products Company (Tecumseh). Tecumseh is
a full line, independent global manufacturer of hermetic
compressors for air conditioning and refrigeration products,
gasoline engines and power train components for lawn
and garden applications, submersible pumps and small
electric motors, headquartered in Tecumseh, Michigan.
TRC Companies is a leading provider of technical, financial,
risk management, and construction services to large
industrial and government customers headquartered in
Windsor, Connecticut.
The TRC contract to complete the investigation and cleanup
of PCB contamination in the watershed of the south branch
of the Manitowoc River in Wisconsin is valued at $15.7
Million. TRC assumed the liability for the investigation,
remediation and monitoring of PCB sediments and TRC
is a party to a Consent Order with the Wisconsin Department
of Natural Resources. The insurance program included
a combined policy limit of $41Million and a term of
20 years.
Hylant Group was retained by Tecumseh to help structure
a third party environmental liability transfer for the
remediation. Hylant worked with Tecumseh Product's law
firm of Greenberg & Traurig on a number of tasks in
this transaction including: structure of the transaction;
development of the project scope; qualification of potential
vendors; competition of select vendors; design, market
and negotiation of the insurance program; and completion
of the transaction.
The environmental insurance placed by Hylant Group included
cost-cap insurance, pollution legal liability insurance,
and a funding for the negotiated cost of the remediation.
The announcement of the transaction by Tecumseh resulted
in an immediate positive market response from analyst
RCB Dain who noted the Exit Strategy contract has the
beneficial results for Tecumseh of capping the cost
of the cleanup and removing a management distraction.
"This is our second successful transaction of this nature
for Tecumseh. Hylant is gratified both by the continued
confidence of Tecumseh in the Hylant Group and also
by the swift and favorable market reaction to the transaction"
remarked Bruce W. Kranz, Senior Vice President and leader
of the Environmental Risk Management practice.
Hylant Group is a 70-year old, privately held insurance
agency offering complete risk management services, insurance,
loss control engineering, 401(k) services, financial
services, health care management, and employee benefits
for businesses and individuals around the world. In
addition to the headquarters in Toledo, OH, the firm
has offices in Ann Arbor and Troy, Michigan; Columbus,
Cincinnati and Cleveland, Ohio; as well as Indianapolis,
Bloomington and Ft. Wayne, Indiana. Hylant is a member
of the Worldwide Broker Network and is ranked as the
26th largest out of more than 15,000 insurance agencies
nationwide.
