Providence Insurance Managers LLC, an investor group whose shareholders include insurance and investment professionals, has been chosen as the successful bidder to acquire Pawtucket Mutual Insurance Company and its subsidiary, Narragansett Bay Insurance Company, subject to regulatory approval and final approval by the Rhode Island Superior Court. Nixon Peabody LLP has served as counsel to Providence Insurance Managers during this process.
Pawtucket Mutual was established in 1848 and is a mutual property and casualty insurance company domiciled in Rhode Island and licensed to sell insurance in 11 states. Narragansett Bay, founded in 1981, is licensed in four states.
The companies were placed into rehabilitation by the Rhode Island Superior Court at the request of the Department of Business Regulation (DBR) in May 2003 due to failing financial condition.
Providence Insurance Managers reportedly plans to supply fresh capital, insurance experience and a solid business plan to successfully recapitalize the companies.