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Company of The Republic Group to Act as Servicing Insurer for New Mexico FAIR Plan.

DALLAS, Aug. 7 /PRNewswire/ -- The Republic Group announced that Southern Insurance Company (Southern) has been selected by the Governing Committee of the New Mexico Property Insurance Program (the Program) to act as Servicing Insurer for the New Mexico FAIR Plan for a three-year period beginning January 1, 2009. The New Mexico FAIR Plan is a not-for-profit underwriting association that provides essential property insurance to qualified applicants in the state of New Mexico who are unable to secure such insurance in the normal insurance market. Approximately 10,000 dwelling fire and commercial property policies with premiums of approximately $3.7 million currently written for the Program by Audubon Insurance Company will be transferred to Southern.


Under the terms of the transaction, Southern will offer a renewal policy to each qualified commercial policyholder who re-applies to the Program and to each qualified dwelling fire policyholder upon the expiration of the existing policy term. Existing policies will transfer to Southern over the 2009 calendar year. In addition, new qualified business applications will be submitted to Southern during the three-year period. All of the business is 100% reinsured by the Program.

"We welcome the personnel of the Program and the many producers throughout New Mexico to The Republic Group," said Parker W. Rush, Chief Executive Officer, Southern Insurance Company. "This transaction helps solidify our commitment to the people of New Mexico and is consistent with our objective of balancing insurance risk with fee-based income to enhance return-on-equity," he said.

Terrie Dunlap, Plan Supervisor of the Program commented, "The New Mexico Property Insurance Program is very pleased with the selection of Southern Insurance Company as its Servicing Insurer. We look forward to working with and building a long-term relationship with such a respected company that is committed to the New Mexico insurance marketplace."

About Republic

Republic Companies, Inc. provides personal and commercial property and casualty insurance products through a group of insurance companies and related entities designated in the industry as "The Republic Group". In its Independent Agents segments, Republic distributes these products to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, New Mexico, Mississippi and Arkansas. In its Program Management and Insurance Services segments, Republic capitalizes on its unique combination of charters and licenses to develop and manage target-niche insurance products that are distributed through managing general agents and other producers in

CONTACT: Michael E. Ditto, Esq., Vice President, General Counsel and Secretary of Republic Companies, Inc., +1-972-788-6000

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Publication:PR Newswire
Date:Aug 7, 2008
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