Less than a decade after taking the helm of the MEMIC Group in 2017, President and CEO Michael Bourque expanded the company’s footprint to the Upper Midwest and the Great Plains by acquiring the South Dakota-based Dakota Group. The deal, completed in January, positions the Portland-based insurer as the nation’s third-largest multi-state workers’ compensation specialist. Bourque, an early-career journalist who joined MEMIC more than 30 years ago, now turns his focus to integration.
Mainebiz: How did the Dakota Group acquisition come about, and what risks did you have to weigh in undertaking the move?
Michael Bourque: We have been growing organically down the East Coast for about 25 years, and that has been successful but slow to achieve the scale that will help us to invest in the technology and people that will make us more efficient and better able to generate larger dividends for policyholders. We also have been looking for ways to make ourselves more valuable to independent agents and brokers who act as our sales force. They need to be able to count on us to be able to underwrite in more jurisdictions and more industries. Since we’re a specialist in workers’ compensation, we already are limited in what we offer so being able to make broader offerings to the market becomes really important.
About two years ago, we had looked at another opportunity that didn’t pan out, but Dakota Group caught our attention when we heard it may go up for sale. We had mutual business partners who helped us see that it could be a great match from a business and cultural standpoint. Dakota Group is a high-performing company and we knew it would be accretive to the group almost immediately. We did not see great risk from the company itself, but needed to make sure we had our house in order to be sure that we could handle the integration risk. Ultimately, the risk might be in not moving forward with this opportunity. There is a lot happening in our space these days and keeping the status quo is not really a winning option.
Mainebiz: As MEMIC grows, how do you maintain the corporate culture and focus?
MB: We have been intentional in creating a policyholder-focused, service-drive organization.
Mainebiz: How is the workers’ compensation landscape evolving?
MB: We have seen rates continue to fall as the frequency of workforce injuries also decreases, which is really good news for employers but it squeezes us and keeps the market ultra-competitive. There hasn’t been a lot of change in regulation in recent years, which is good — we have a balanced and fair system in Maine.
Mainebiz: What’s the biggest misconception about workplace safety among employers?
MB: Employers often do a good job with the big and obvious risks but the environmental ones — like icy parking lots in winter — sometimes are overlooked. Some of our largest, most expensive claims come from those conditions. Beyond that, while it makes sense, some employers don’t connect that value a strong culture of teamwork and mutual support actually leaders to fewer lost days from work due to injury.
Mainebiz: You have said that your small-town upbringing taught you to ‘pitch in.’ How so?
MB: In a small town, you can’t wait for someone else to fix something or to wait until you have an expert, you have to jump in and do it. My upbringing in Aroostook County taught me to volunteer, to say “yes” to that committee or project [and] to understand that you can’t wait for someone to ride in on a white horse, you have to be part of it and sometimes you lead it.
Mainebiz: What’s next for MEMIC?
MB: I don’t anticipate any near-future acquisitions. This is a big gulp for us. We will be busy integrating and working to realize the vision with Dakota Group, where we combine and are the third-largest multi-state workers’ compensation specialist in the U.S.
