Employers Insurance Company of Nevada (EICN) has acquired California-based Fremont Compensation Insurance Group’s book of business, effective July 1.
Fremont Comp is a wholly-owned subsidiary of Fremont General Corporation.
Nevada-based EICN acquired the renewal rights to the ongoing book of workers’ comp business currently held by Fremont Comp. The new business will operate under the name of Fremont Employers Insurance Company.
EICN president and CEO Douglas Dirks told Insurance Journal that, “For the past 90 years, [we] have been a single state provider of workers’ comp insurance. Eighty-seven of those years were as a state fund, and the last two-and-a-half has been as a private entity. So we were looking for opportunities to expand our geographical reach and have a bit more diversity in our book of business. The Fremont Comp opportunity provided that to us.”
The new business will include policies in California, Idaho, Utah, Montana, and Colorado.
Dirks said that the company would retain most of the Fremont employees, including Fremont president Mary-Lou Misrahy, who will become COO and executive vice president. “We believe that the current book of business is a very attractive book, and the staff that has been running that business in California are very experienced. It would be our intention to retain that staff, and then to continue to grow that book of business as market conditions would warrant.
“Certainly we’re excited about the opportunity to provide additional products and services, not only within the California market, but in a number of other Western states,” added Dirks.
Fremont also entered into a definitive agreement with the California Department of Insurance, which will allow Fremont to self-administer the run-off of its workers’ comp insurance policies currently in force and preserves the company’s net operating loss carry forwards attributable to its discontinued workers’ comp insurance subsidiary.
EICN is a mutual workers’ comp insurance company with more than 11,000 Nevada policyholders. Prior to the acquisition, Fremont Comp held a similar number of policies.
In 2001, EICN’s annual policy revenue was approximately $120 million. Revenues are expected to double with the acquisition of the Fremont business.
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