Seibels Flood Book Sold For $5Million
By Mark E. Ruquet
NU Online News Service, Oct. 1, 4:10 a.m. EST?Selective Insurance Group Inc. said it has signed a letter of intent to purchase the flood business of Seibels Bruce Group Inc. of Columbia, S.C., for $5 million--depending on certain conditions.
Selective, based in Branchville, N.J., said purchase of the Seibels book, which is part of the federal National Flood Insurance Program, should be completed in the fourth quarter of this year.
The, insurer said the transaction is subject to a number of conditions, including regulatory approval and due diligence. If all conditions are met, Selective said it would pay Seibels $4 million in cash at the close of the deal.
Sharon Cooper, a spokeswoman for Selective, said an additional $1 million would be paid to Seibels in two payments of $500,000 each in December of 2003 and 2004, if certain conditions are met. She said the company would not disclose those conditions until after the deal is completed.
Last year, Selective purchased the flood book of Union American Insurance, in Miami, and Highlands Insurance Group, of Lawrenceville, N.J. The two combined covered more than 20,200 policyholders and $6.6 million in premium. The number of policies and premium base for Seibels could not be disclosed at this time, Ms. Cooper said.
Selective said it currently services more than 126,000 flood policies at close to $50 million in premium under the National Flood Insurance Program.
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