USLICO TO SELL UNITS
TO HARLEYSVILLE GROUPARLINGTON, Va. - USLICO Corp. Monday announced it signed a letter of intent to sell Hawkeye-Security Insurance Co. and its consolidated subsidiaries to Harleysville Insurance Group Inc. and Harleysville Mutual Insurance Co. for $135 million.
The agreement calls for payment of $110 million in cash and $25 million in a note from Harleysville Mutual Insurance Co. payable over seven years at 10 percent interest per year. Immediately before closing, Hawkeye-Security will return to USLICO 500,000 shares of USLICO common stock.
Hawkeye-Security, headquartered in Des Moines, Iowa, writes personal and commercial lines of insurance in the Midwest and Western states. Premiums written by Hawkeye-Security and its consolidated subsidiaries, United Security Insurance Co. and Western States Insurance Co., were approximately $130 million in 1989.
PRUDENTIAL TO INSURE
NEWARK, N.J. - Dillard Department Stores Inc. of Little Rock, Ark., has chosen the Prudential Insurance Co. of America as its employee health insurer.
Prudential will cover more than 13,000 Dillard employees, mainly in the Southwest under the PruCare Health Maintenance Organization (HMO), and PruCare Plus.
PruCare Plus allows participants to choose either a managed care network of providers or traditional coverage at the time health care is needed.
The sale was negotiated by Tracy Baker, Prudential regional group manager, Tulsa Group Office.
JOINS INSURER ALLIANCE
SCHAUMBURG, Ill. - American Reliance Insurance Cos. joined the Alliance of American Insurers.
American Reliance is a mutual company organized on Dec. 4, 1879, under the laws of New Jersey. It was re-incorporated in 1904 under a mutual plan to write fire insurance, and charter powers were broadened 48 years later to permit multiple line underwriting.
The company, licensed in 11 states, writes insurance for fire, allied lines, farm owners, homeowners, commercial multiple peril, inland marine, workers compensation and general liability.
The alliance is a national trade association representing approximately 170 property and casualty insurance companies.
EMPIRE INSURANCE GETS
STAKE IN GOULD DENTE
NEW YORK - In efforts to improve the quality of service to its clients, Empire Insurance Group acquired a substantial financial interest in Gould Dente Agency, a general insurance agency based in New York, for an undisclosed amount.
Joseph Dente, president of Gould Dente, will become chairman of the board of directors of the agency, and Albert J. Dente, vice president of the agency, will assume the titles of president and chief executive officer.
Following the acquisition, the insurance agency will continue to conduct business as usual. Currently, Gould Dente writes 75 percent of Empire's property-casualty business.
PA. COURT TAKES CHARGE
OF ROCKWOOD INSURANCE
HARRISBURG, Pa. - In response to a joint petition filed July 20 by the state Insurance Department and the Rockwood Insurance Co., Rockwood, Pa., the Pennsylvania Commonwealth Court has issued an order putting the insurer into rehabilitation.
Until a Nov. 19 hearing to consider the proposed plan of rehabilitation, the Insurance Department will oversee operations of the company, including processing claims, paying undisputed claims and negotiating disputed claims, according to Commissioner Constance B. Foster.
The court's order stays all lawsuits against Rockwood and prohibits the filing of any new litigation against the company.
Not affected in the proceeding is Rockwood Insurance Co. of Indiana, a wholly owned subsidiary firm that will continue to transact business under the direction of its current management.