USF&G Company Profile and Timeline

USF&G was a major American insurance company that operated for over a century. It was founded in 1848 by a group of Baltimore businessmen.

The company's early success was driven by its innovative use of marine insurance policies. This allowed it to tap into the growing maritime trade in the United States.

USF&G expanded its operations significantly during the late 19th and early 20th centuries, establishing a presence in multiple states across the country.

By the mid-20th century, USF&G had become one of the largest insurance companies in the United States.

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The United States Fidelity and Guaranty Company, or USF&G, has a rich history that spans over a century. It was originally called United States Fidelity and Guaranty Company and was organized on March 19, 1896.

John Randolph Bland was the company's principal founder. He was a key figure in the company's early days and played a significant role in its growth and development. On October 29, 1900, the company president John R. Bland vehemently denied that the company had paid any commissions to Richard Crocker with the intent of obtaining business in New York.

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In May 1902, the United States Fidelity and Guaranty Company of Maryland purchased a controlling interest in the stock of the New York surety company The Lawyer's Surety Company. This move marked a significant expansion for the company and helped establish its presence in the New York market.

The company's business in New York was overseen by company vice president Andrew Freedman at the time. The company's growth and expansion were not without controversy, however. On November 20, 1902, the company agreed along with two other major Baltimore bonding surety companies to "end rate cutting in taking bonds."

The company's official income for the year 1921 was $27,593,434. This marked a significant increase in revenue for the company. Total assets were close to $34 million, indicating a strong financial position.

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USF&G formed a holding company for its insurance businesses and changed its name to USF&G in July 1981.

The company rapidly diversified its businesses but encountered significant financial difficulties in most of them throughout the 1980s, leading to a major overhaul under new CEO Norman Blake in 1990.

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By 1992, USF&G was once again highly profitable thanks to Blake's efforts.

USF&G was acquired by Saint Paul Companies in January 1998 for $3.9 billion in stock and assumed debt.

The new company, Saint Paul Companies, had been founded as Saint Paul Fire and Marine Insurance Co. in 1853 in Minnesota.

USF&G and Saint Paul Companies announced a merger agreement in January 1998, which would create the eighth largest property and casualty insurer in the U.S.

The merged company would have net written premiums of $7 billion and total assets of $36 billion, with a combined market capitalization of $10 billion.

The merger was valued at $3.5 billion, including $2.8 billion of equity and the assumption of approximately $400 million in debt and $300 million of capital securities.

The transaction was expected to close in mid-1998, subject to regulatory approvals and shareholder votes.

The combined company planned to take a restructuring charge of between $300 million and $500 million in 1998.

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John J. Kennedy was a New York State Treasurer from 1911 to 1914, who tragically took his own life in 1914.

He had previously been the resident vice president at Buffalo of the United States Fidelity and Guaranty Company of Baltimore.

This bonding company was connected to Tammany, and Kennedy had turned over his business to his son William upon his election in 1910.

William Kennedy became the Resident Secretary at Buffalo of the company, and he was linked in the bonding business with Charles F. Murphy, Jr., the nephew of Tammany Hall boss Charles F. Murphy.

Both Kennedys, Murphy, and others had been investigated by Governor Martin H. Glynn's Special Graft Investigator James W. Osborne and questioned by the Manhattan Grand Jury and District Attorney Charles S. Whitman.

Treasurer Kennedy feared to be indicted for perjury, a claim denied by his attorney.

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