EICN Acquires Freemont Book
By Daniel Hays
NU Online News Service, July 3, 1:10 p.m. EST?Employers Insurance Company of Nevada said today it has acquired the workers' compensation book of business from the troubled Freemont Compensation Insurance Group of Glendale, Calif.
No terms were announced for the deal, which became effective on Monday.
Reno, Nev.-based EICN, a former state fund that privatized Jan. 1, 2000, said it expected the transaction to double its revenues to $240 million. EICN has lost considerable business on its books since it became a private mutual. The comp insurer said it currently has 11,000 policyholders in Nevada.
A spokesman for EICN, Phil Levine, said Fremont's four existing California office locations and one in Boise, Idaho will continue in business, and 240 Fremont employees will join EICN,
Management joining EICN includes Fremont President Mary-Lou Misrahy, who becomes EICN chief operating officer and executive vice president, and John Donaldson, who becomes EICN chief financial officer and executive vice president.
Fremont, a subsidiary of Fremont General Corp., suffered $450 million in losses in 2000. The company has been operating under California Department of Insurance supervision.
Douglas Dirks, EICN president and chief executive officer, said his company's move comes at an opportune time because, "Every indication is that the California market is rebounding. Therefore we believe that our acquisition of the Fremont business will provide a stable revenue base that benefits all of our policyholders."
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