INSURANCE BRIEFS

INSURANCE BRIEFS

JEFFERSON-PILOT BUYS

ALEXANDER HAMILTON LIFE

GREENSBORO, N.C. - Jefferson-Pilot Corp. has completed the acquisition of Alexander Hamilton Life Insurance Co. of America from Household International Inc.

Jefferson-Pilot paid $575 million for Alexander Hamilton exclusive of its credit insurance business.

"We are very excited about the potential that Alexander Hamilton adds to Jefferson-Pilot," David Stonecipher, Jefferson-Pilot chief executive, said on Monday.

Jefferson-Pilot Corp. is one of the nation's largest shareholder-owned life insurance companies.

GUARANTY ASSOCIATIONS

TO MEET IN SEATTLE

HERNDON, Va. - Deborah Senn, insurance commissioner for the state of Washington, and Brian K. Atchinson, Maine's superintendent of insurance, will address the annual meeting of the National Organization of Life and Health Insurance Guaranty Associations (Nolhga) Sunday through Tuesday in Seattle.

Nolhga represents 52 state life and health guaranty associations, which pay the claims of policyholders and creditors of insolvent insurance companies through assessments on other life and health insurers in the state.

Also scheduled to speak are John A. Fibiger, chairman of Transamerica Occidental Life Insurance Cos. and Herbert E. Goodfriend, managing director of the Capital Strategies Group at KPMG Peat Marwick.

For more information, contact Christopher Bonner or Lisa Meyer at (703) 481-5206.

TERRA NOVA HOLDINGS

RAISES $50 MILLION

HAMILTON, Bermuda - Terra Nova (Bermuda) Holdings Ltd. said Tuesday it had raised $50 million in additional capital, having completed a rights offering with existing shareholders.

The company is the parent of Terra Nova Insurance Co., based in the United Kingdom, which writes marine insurance and property/casualty reinsurance. A sister company, Terra Nova (Bermuda) Insurance Co. Ltd., primarily focuses on P/C reinsurance.

Of the $50 million, $35 million will be used to increase the capital and surplus of Terra Nova (Bermuda) to more than $110 million, $5 million will be added to Terra Nova Insurance, and the balance will remain with the holding company, said Chairman William O. Bailey.

COMMUNITY MUTUAL JOINS

WITH ASSOCIATED GROUP

CINCINNATI - Community Mutual Insurance Co. and the Associated Group of Indianapolis on Monday began operating as one company.

Anthem Blue Cross and Blue Shield, based in Cincinnati, will serve more than 4 million health care customers in Ohio, Kentucky and Indiana by managing all of the Blue Cross-Blue Shield programs underwritten and sold by Associated Group affiliates in the three states.

The companies said their merger became final last week following approval by the Ohio and Indiana departments of insurance.

Dwane Houser, who has been chairman of Community Mutual, will be chief executive of Anthem Blue Cross and Blue Shield. The Associated Group merged in 1993 with the Southeastern Group (Blue Cross and Blue Shield of Kentucky).

Anthem is building administrative offices in Mason, about 20 miles north of Cincinnati.

INSURERS SEEK IMMUNITY

FOR FRAUD REPORTERS

Legislation that will grant immunity to individuals reporting insurance crime is crucial and will help hold down the cost of insurance in Michigan, insurers told a state senate committee.

"Michigan is the only major Northern industrial state without insurance fraud reporting immunity. This provision in particular is crucial for the state," Bill Schroeder, vice president-claims for the Alliance of American Insurers, told the Michigan Senate Financial Services Committee Monday.

Mr. Schroeder said the committee should pass a bill passed by the state House of Representatives in May that would criminalize insurance fraud, provide for fraud reporting immunity, require restitution and impose fines.