Spokane-based Corkery & Jones Benefits Inc., doing business as Moloney+ ONeill Benefits, says its merging with Benefax Inc., another insurance brokerage here.


The merger, which is expected to close July 1, will add roughly 150 insured employer-employee groups to Moloney+ ONeill, which currently brokers plans for 750 employer-employee groups in the Inland Northwest and has roughly $130 million in annual premium volumes, says Mark Newbold, a partner in Moloney+ ONeill. It also will add four employees to the 33-employee company.


Benefax started here in 1984, says Ward Sandberg, its president. The company was founded by Sandbergs older brother, John, who passed away in 1990. John Sandberg decided to carve out a niche in the insurance brokerage industry by specializing in employee benefits, which at that time typically were handled by departments within larger insurance agencies, Ward Sandberg says. In particular, he focused on serving municipalities.


Benefaxs clients primarily include tax-supported entities in the Northwest, such as counties, cities, school districts, and tribal governments and enterprises, Sandberg says. The companys annual premium volumes are about $50 million, he says.


The merger provides Moloney+ONeill with a client base in a sector it hasnt been involved with much in the past, Newbold says. In addition, Benefax has a larger percentage of partially self-funded insurance contracts than does Moloney+ONeill, and thats an area in which the company wants to expand further, due to rising client interest, Newbold says.


The companies also decided to merge to provide a continuity of service to their clients, Newbold says. Both have partners who are approaching retirement and wanted to make sure they had a multigenerational operation that could carry on after they leave, he says.


Under the terms of the merger, Sandberg and his son, Eric, will become partners in Moloney+ONeill. Benefaxs operations will move later this month from leased space in the Hutton Building, at 9 S. Washington, to the Lincoln Building, at 818 W. Riverside, where Moloney+ ONeill plans to move as well. Moloney+ ONeill currently is located at 1206 N. Lincoln, a few blocks north of downtown.


Last fall, a group of investors affiliated with Moloney+ONeill bought a stake in the Lincoln Building. The brokerage plans to occupy about 25,000 square feet of space on three floors of the structure.


Newbold says Moloney+ONeill plans to continue growing and is in discussions with other brokerages here about potential transactions. He says he expects that within the next five years more small brokerages will join forces with larger ones, partly because so many people within the industry are nearing retirement. In addition, brokerages are seeking to pool their resources to provide enhanced services to their clients, particularly in the realm of technology, Newbold says.


Its about centralization of costs and collaboration of ideas so that the client is better served, Sandberg says.


Contact Emily Proffitt at (509) 344-1265 or via e-mail at emilyp@spokanejournal.com.