CRUM AND FORSTER RESTRUCTURING APPROVED BY INSURANCE REGULATORS; COMPANY RENAMED TALEGEN HOLDINGS, INC.
STAMFORD, Conn., Sept. 7 /PRNewswire/ -- The insurance departments of all states in which Crum and Forster companies are domiciled have approved the recapitalization and legal restructuring of the company's insurance operations into stand-alone operating groups. Crum and Forster recently realigned its insurance operations into seven business units, each of which focuses on a specific segment of the property/casualty insurance market. With the approvals just received from insurance regulators, Crum and Forster has now established and capitalized seven insurance operating groups with independent legal entities dedicated to these groups, each with its own investment portfolio, loss reserves and capital. The company is also changing its name from Crum and Forster, Inc. to Talegen Holdings, Inc. The seven insurance operating groups under Talegen and their areas of specialization are: --Constitution Reinsurance -- treaty and facultative reinsurance --Coregis -- professional liability, public entity and other property/casualty programs --Crum & Forster Insurance -- commercial property/casualty insurance through a select network of independent agents --Industrial Indemnity -- workers compensation coverage and services --The Resolution Group -- reinsurance collection services and management of run off businesses --Viking -- non-standard personal automobile --Westchester Specialty Group -- umbrella, excess casualty and specialty property business "Obtaining approval of the restructuring plan from the various states is a significant milestone toward our objective of realizing the maximum value for Xerox shareholders," said Stuart B. Ross, chairman and chief executive officer of Xerox Financial Services, Inc. (XFS). Consistent with prior disclosures, XFS is contributing additional capital to Talegen to facilitate the restructuring. The capital consists of $235 million in cash and $100 million in notes. Support in the form of additional excess of loss reinsurance protection will also be provided by XFS through Ridge Reinsurance Limited (Ridge Re), a Bermuda-based wholly owned subsidiary of XFS, for installment premiums of $32 million each year, plus related financing charges, payable by XFS for up to 10 years. XFS has committed to the Talegen insurance companies that Ridge Re will meet all of its financial obligations under the excess of loss reinsurance issued to them. Since January, Talegen has increased the statutory surplus of its seven insurance groups to more than $1.8 billion and has worked closely with state regulators to address details related to the restructuring plan. "The restructuring and strengthening of the balance sheets of the Talegen companies are essential elements in the execution of the on- going Xerox intention to exit the financial services business, which was announced in January," Ross said. Joseph W. Brown, Jr., chairman, president and chief executive officer of Talegen, said, "We would not have succeeded in this complex task without the guidance and cooperation of regulators in several key states." Brown added, "With an improved management focus and significant increase in capital and balance sheet protection, our insurance groups are now strongly positioned to compete profitably in their respective markets. In addition, the new structure will allow us to facilitate the replacement of Xerox capital from outside investors interested in one or more of the groups." -0- 9/7/93 /CONTACT: Leslie Thurston of Talegen, 201-490-6150, or Barbara McNear of XFS, 203-968-4499/
CO: Crum and Forster ST: Connecticut IN: INS SU: RCN
TS-MP -- NY005 -- 9169 09/07/93 08:07 EDT
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|Date:||Sep 7, 1993|
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