A global insurance provider with more than $1.2 billion in annual revenues is the latest company to agree to move its headquarters to Connecticut from Westchester County in exchange for state incentives.
Stamford”™s strong contingent of insurance companies and its transportation center were decisive in luring The Navigators Group Inc. from Rye Brook, N.Y., a company official said last week.
Navigators is the 10th company to be offered incentives under Connecticut”™s “Next Five” job creation initiative and its predecessor, “First Five,” both pioneered by Gov. Dannel P. Malloy and overseen by the state Department of Economic and Community Development (DECD).
The programs have provided companies including Bridgewater Associates L.P., Charter Communications Inc., and NBC Sports Group ”” all of which have already moved to or are in the process of relocating to Stamford ”” with state incentives in exchange for pledges to create at least 200 new jobs in Connecticut.
Malloy and DECD officials “made it very clear that Navigators was an attractive, growth-oriented company they wanted to bring to their state, and they succeeded in making a compelling case for us to make the move to Connecticut,” said Navigators president and CEO Stanley A. Galanski in a March 15 statement.
The commercial property and casualty specialty insurance company, which has offices in the U.S., Europe, China and South America, will move all 100 of its current headquarters staff to Connecticut by the end of 2013.
Most of that group will be headed to the company”™s future headquarters in Stamford, said R. Scott Eisdorfer, the company”™s chief administrative officer, who declined to name the property Navigators had chosen.
To assist with the move and with related capital expenditures, which Navigators estimates will cost about $25 million, the DECD will provide Navigators with a 10-year, forgivable loan of up to $8 million at no interest, as well as a grant of up to $3.5 million. The incentives are contingent on Navigators meeting its job creation commitments.
The move represents a win for Stamford, said Laure Aubuchon, the city”™s director of economic development.
“Obviously, anytime a CEO has a decision to make as to where they go, it”™s a lot easier to stay where you are,” Aubuchon said. “So it”™s a very proactive vote of confidence to the city of Stamford.”
Eisdorfer said Navigators is also looking to move its data center to Connecticut and to establish an operations service center in Connecticut, which he said would involve the transfer of current employees to the new sites and the hiring of new employees.
“There will be some employees who will be moving from Rye Brook and there”™ll certainly be new, fresh hires,” Eisdorfer said. “Even more so in our operations service center, because we don”™t have anyone in Connecticut currently from our operations service center.”
In all, Navigators has pledged to establish more than 200 jobs over five years in Connecticut, with Malloy saying the company would “strengthen Connecticut”™s global reputation as a leader in the insurance industry.”
Eisdorfer said the company, which is currently based at Reckson Executive Park in Rye Brook, began its search for a new headquarters several years ago with its lease set to expire at the end of 2013.
He said the company considered staying in Rye Brook.
“Absolutely … we looked here and we looked in a few other locations and we settled on Stamford, and for the other operations and functions we looked at many cities,” Eisdorfer said. Ultimately, the company will not retain any presence in Rye Brook, he said.
“Stamford”™s got a lot of insurance companies. We know it well,” Eisdorfer said. “We know a lot of our peer companies and even some of our partners are currently in Stamford, so we feel it”™s a very positive environment for us.”
Additionally, he said the city”™s transportation center, which provides links to New Haven and New York City, would allow Navigators to recruit from far beyond the Stamford area.
“That was a very big differentiator ”” a big factor in our choosing Stamford,” Eisdorfer said.
