Reliance Group Holdings subsidiary Reliance Insurance Co. has entered into a formal order of supervision and a related agreement with the Pennsylvania Insurance Department. Reliance has been working closely with the department and had an agreement since August to file periodic reports.
Also, the company agreed it must obtain prior approval of certain financial transactions. Under the new agreement, approval requirements will be expanded.
The Order appoints Stephen J. Johnson, deputy commissioner of insurance, as the Supervisor and provides that the Department will appoint an on-site representative to Reliance Insurance. The Order will not affect Reliance’s ongoing discussions with its creditors and the department regarding a financial restructuring.
The company will be making a form 8-K filing with the Securities and Exchange Commission with respect to the Order.