Insurance holding company NYMAGIC, Inc. reported it has closed on an agreement with workers compensation services firm CRM Holdings, Ltd. to have CRM assume almost all of the excess workers’ compensation policies that NYM had written in conjunction with CRM during the past several years.
NYM said it will realize a pre-tax benefit of approximately $ 6.7 million while CRM expects a pre-tax benefit of about $1.9 million on the deal.
According to A. George Kallop, NYM president and chief executive officer, the relationship under which NYM has for several years written a book of excess workers’ compensation insurance in conjunction with CRM is ending. “When our corporate paths diverged, we parted company on good terms, and this transaction enabled us to crystallize our profits from this book while enabling CRM to manage it independently going forward,” Kallop said in a statement.
Kallop said NYM will continue writing excess workers’ compensation insurance with other partners in the future.
NYMAGIC, Inc.’s property and casualty insurance subsidiaries specialize in writing ocean marine, inland marine and non-marine liability insurance. The company maintains offices in New York and Chicago.
CRM Holdings, Ltd. offers fee-based management and other services to workers’ compensation self-insured groups and traditional workers’ compensation insurance products. CRM provides its fee-based management services to self-insured groups in New York, California and Texas. It provides its traditional workers’ compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington and, starting on April 1, 2007, New Jersey.
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