Travelers Property Casualty has signed a letter of intent to acquire the surety business of Reliance Group Holdings for $580 million. Reliance Surety recorded net written premiums of $213 million in 1999.
"The combination of the surety operations of Reliance and Travelers will create a premier competitor in one of the most attractive segments of the property and casualty industry," said Jay Fishman, president and chief executive officer of Travelers Property Casualty. "While augmenting our U.S. capabilities, Reliance Surety brings to Travelers a team of international surety underwriters whose expertise can be leveraged through the global network of Citigroup."
The transaction is expected to close by the end of May 2000.
Thomco launches four new programs
Thomco introduced four new programs for niche markets. Adult Home Plus is designed for assisted living/personal care homes, independent living, Alzheimer's, and aging in place facilities. Endorsed by the National Council of Senior Citizens, the program provides blanket property, general liability, automobile, professional liability, sexual and physical abuse, umbrella liability, equipment breakdown, workers compensation, directors and officers liability, inland marine, crime, and EDP coverage. The program is available in all states except Alaska, Hawaii, and Wyoming. Thomco offers a three-tiered rating system on the package by using the separate filings of three A rated carriers under common ownership.
Thomco also introduced two programs for the child care market. Childcare Choice®, the successor to the Childcare Complete package, offers such enhancements as sexual abuse limits equal to general liability policy limits (vs. $100,000/$300,000 for Childcare Complete); sexual abuse coverage that now includes defense protection for owners in the event of a lawsuit; and automatic business limits of $75,000 per location with no waiting period (vs. $50,000 per occurrence with a waiting period).
Another new product for the child care market is the Family Child Care Providers Liability Insurance Program for smaller, family-based facilities. The A rated program has been selected by the National Association for the Education of Young Children and is recognized by the National Association for Family Child Care.
Pest Control Pro is an A rated program for pest control operators. The comprehensive occurrence form provides coverage for job site sudden and accidental pollution; pollution in transit; real estate inspections for termites at policy limits; care, custody, and control at policy limits; and available workers compensation. Offered in association with LIPCA, Inc., the program now provides coverage for fumigation in addition to lawn application and termite treatment. *
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