Crop Growers and Fireman's Fund Announce Discussions Regarding Alliance.GREAT FALLS Great Falls, city (1990 pop. 55,097), seat of Cascade co., N central Mont., second largest city in the state, at the confluence of the Missouri and Sun rivers and near the falls that give the city its name; inc. 1888. , Mont.--(BUSINESS WIRE)--May 30, 1996--Crop Growers Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CGRO CGRO Compton Gamma-Ray Observatory ) and Fireman s Fund Insurance Company announced today that they are in discussions regarding an agreement under which Crop Growers would agree to substantially increase the amount of premium it places with Fireman s Fund. Further, Fireman s Fund would purchase $10 million of a new series of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into common stock of Crop Growers at $13.25 per share. The transaction is subject to corporate approvals by both parties and execution of definitive agreements and other closing conditions, including regulatory approvals. "We are excited about the proposed expansion of our relationship with Fireman s Fund, which is recognized as one of the leaders in the insurance industry, and their increased commitment to the crop insurance market," said Paul Horn Paul Horn is the name of:
Joe Stinnette, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Fireman s Fund said, "We have enjoyed a profitable association with Crop Growers for the past two crop years and are looking forward to expanding the relationship. The proposed arrangement should prove beneficial to the long-term objectives of both companies." Crop Growers markets and services federal multi-peril crop insurance and crop hail insurance for third party insurance companies and its own insurance company subsidiaries. Crop Growers is the nation s second largest servicer of the crop insurance. The company also develops, markets and sells farm management software and related mapping products. Crop Growers had 8,149,131 shares outstanding as of March 31, 1996. One of the top 20 property casualty companies in the U.S., Fireman s Fund has assets of $11.2 billion and had gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. of $3.8 billion in 1995. The 134-year old Fireman s Fund is assigned an "A" rating from A.M. Best Company and "Aa1" from Moody s. Fireman s Fund has 7,885 employees who operate out of 40 major offices, distributing business and personal lines insurance through more than 6,100 independent agents. CONTACT: Crop Growers Corporation Bob Rousey, 208/666-5340 or Fireman's Fund John Kozero, 415/899-2166 |
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