Mayor James Doyle with CEO Nick Steffey

By DONNA KENNY KIRWAN

PAWTUCKET — Hard work and corporate refocusing helped dig the once-troubled Pawtucket Mutual Insurance Company out of a hole, and now, a $200 million infusion of investment funding should help the century-old company to remain solid and soar higher.

The Narragansett Bay Insurance Company (NBIC), as it is now known, announced on Tuesday the completion of a funding agreement totaling $200 million from three private equity investors: Pine Brook Capital Partners LP, Soros Strategic Partners LP, and RenaissanceRe Holdings Ltd. According to company officials, the equity is an important tool that will help grow the company’s homeowners insurance business along the Eastern seaboard.
Headquartered in Pawtucket, Narragansett Bay Insurance Company offers specialty insurance products and services to homeowners through a network of independent insurance agents in Rhode Island, Massachusetts and New York.
The company emerged from the 158-year-old Pawtucket Mutual Insurance Co., which was originally acquired by NBIC’s parent company, Blackstone Financial Group, Inc., in December, 2005.
At a press conference held at Pawtucket City Hall, Pawtucket Mayor James Doyle said this funding represents the largest investment in a Pawtucket-based company that he has seen in years.
He said it was “exactly what I hoped for in December of 2005” when Narragansett Bay Insurance Company and its parent company, Blackstone Financial Group acquired the struggling Pawtucket Mutual Insurance Company.
Doyle congratulated Nick Steffey, the company’s chief executive officer, and his management team, and said he welcomed the new investors.  
Doyle noted that in its long history, the Pawtucket Mutual Insurance Company has been a tremendous supporter of local civic groups and organizations.
“The company’s office has been located at 25 Maple Street since 1904 and with this $200 million investment, I wish them another 100 years at this address,” said Doyle. He added that the investment “guarantees a future for this historic company, and as it grows, the City of Pawtucket will grow along with it.”
Steffey said that while the company has accomplished a successful rehabilitation, the infusion of new capital is important because “it allows us to get ourselves to the next horizon of growth.”  He said the company is now focused on expanding its $6 billion homeowners business in Massachusetts, Rhode island and New York, and plans on hiring some 20 to 30 people over the next few years.
Albert J. Pereira, NBIC’s president and chief underwriting officer, complimented Steffey and his management team for their innovative ideas and winning approach that helped turn the company around. “It is a great day,” said Pereira. Noting his own local roots, including being an alumnus of St. Raphael’s Academy, he added, “And we’re pleased to be able to do this in Pawtucket.”
Rich Davis, of the Pawtucket Foundation, complimented the company for “hanging in there” during a difficult rehabilitation process, and spoke optimistically about its new investors, while Herb Weiss, Pawtucket’s Economic and Cultural Affairs Officer, said he is “so happy to have the downtown invigorated” by companies such as this one.
Richard Blockson, the Times general manager, called the investment news “just fantastic.” He also thanked the new partners of NBIC, adding, “The whole city stands behind you in your new venture.”