The St. Paul Companies intends to purchase the municipality book of business of PENCO, a program administrator based in Nashville, Tenn., and owned by Willis North America Inc. Under the proposed transaction, The St. Paul will purchase the right to renew PENCO’s entire book of municipality business and the PENCO name.
This book represents approximately $60 million in premium. The St. Paul has also signed an agency agreement with PENCO and will be the renewal insurer for PENCO’s municipality business until the transaction is closed, which is expected to occur in the first quarter of 2001. PENCO is one of the largest program administrators of public entity insurance in the United States.
Not affected by this sale are PENCO’s school and energy programs, Willis Pooling and Willis’ Associations Group.