Travelers Insurance has reached an agreement in principle with Reliance Group Holdings to purchase the renewal rights to a portion of Reliance Insurance Group’s commercial lines middle-market book of business.
Beginning next month, subject to execution of the definitive agreement and customary individual underwriting reviews, Travelers plans to offer renewal policies for many of Reliance’s middle-market accounts at terms and conditions similar to those in place.
The sale marks the third unit to be sold by Reliance over the last several weeks. The piecemeal sales led to the recent decision by Leucadia National Corp. not to purchase the struggling insurer. In Pennsylvania, where Reliance is domiciled, the department of insurance reports ongoing discussions with Reliance.
Spokesperson Angela Yarbrough said that while the department is meeting with the company “and other regulators on a consistent basis” she did not want to suggest that the liquidation process has begun, or that it ever would. In April, Reliance units were purchased by The Hartford and Kemper insurance companies. Speculation has been made by analysts that the next unit to go could be Reliance’s international business.
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