PMA Sells Finite Business to Imagine

The finite business, written by PMA Re, had an in-force value of $333 million as of Nov. 1, according to a PMA statement. The transaction is subject to the completion of due diligence and definitive documentation.

Under the preliminary terms of the transaction, New York-based Imagine will compensate PMA based on the amount of in-force business assumed and renewed by Imagine, which PMA cannot currently estimate.

"As we have previously stated, we are seeking to effect an orderly transition of our reinsurance business," said William Hitselberger, PMA's chief financial officer and treasurer. "A transfer of our finite business will represent a significant step forward in this process."

"We believe that Imagine is a leader in the specialty reinsurance business, and we are confident that this transaction will provide our clients and producers with an experienced partner for the future."

Earlier this week, PMA took a $150 million pretax charge to boost its reinsurance unit loss reserves. The company also announced the departure of its two top executives, chief executive officer John Smithson and chairman Frederick Anton.