13 September 2017Insurance

Alleghany sells workers’ compensation unit for $150m

Alleghany Corporation said on Sept. 13 that its subsidiary Alleghany Insurance Holdings is selling Pacific Compensation Insurance Company (PacificComp) to CopperPoint Mutual Insurance Company for $150 million of total cash consideration.

PacificComp is an underwriter of workers' compensation insurance, primarily in California.

In connection with the transaction, an Alleghany subsidiary will continue to provide adverse development reinsurance cover on PacificComp's pre-acquisition claims. The transaction is expected to close at the end of the year.

Weston Hicks, president and CEO of Alleghany, said: "We are thrilled to have found a great home for PacificComp's employees and policyholders.  I would like to thank Jan Frank for her leadership and the entire PacificComp team for their efforts over the past five years to build PacificComp into the successful California workers' compensation specialist it is today. As part of the CopperPoint family of companies, PacificComp will be ideally positioned to continue to grow profitably and to capitalize on new opportunities."

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Today’s news stories

Munich Re issues profit warning after US hurricanes

Hurricane Irma to boost US nat cat reinsurance rates by up to 5%

Lloyd’s Beale warns on marine market share loss

Chubb names new head of high net worth insurance unit

Mapfre unit expands into London aviation market

Home and motor insurers comment on hurricane losses

Commercial insurer HDI expands cyber cover programme as demand jumps

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
29 March 2017   Alleghany president Weston Hicks bets on investments outside of re/insurance to boost profitability. Hicks sees little upside from buying back shares, and the company’s $1 billion in relatively liquid assets gives it the flexibility to take advantages of opportunities such as market hardening, if they come to fruition.