Sign in Subscribe
Insurance

St. Paul Companies Acquires Pacific Select Insurance Holdings Inc.

Strategic Insights

— 1 min read

The St. Paul Companies has announced the acquisition of Pacific Select Insurance Holdings Inc. and its subsidiary Pacific Select Property Insurance Co., a California-based insurer specializing in earthquake coverage for homeowners. The acquisition is expected to grow St. Paul's earthquake insurance business in California, while also providing cost-saving opportunities and diversifying its risk exposure. The deal is subject to certain adjustments and is expected to close in the first quarter of 2000.

Key Takeaways:

  • The acquisition of Pacific Select Insurance Holdings Inc. is valued at $37 million, subject to certain adjustments.
  • Pacific Select Property Insurance Co. has a staff of about 12 and generated 1999 net written premiums of approximately $18 million, primarily from southern California.
  • GeoVera Insurance Co., The St. Paul's earthquake underwriting company, will manage the acquired business and has 1999 net written premiums of approximately $40 million.
  • The acquisition is expected to close in the first quarter of 2000, allowing St. Paul to grow its earthquake insurance business in California, while also providing cost-saving opportunities and diversifying its risk exposure.
  • Pacific Select Property customers will benefit from the financial strength of The St. Paul.
  • The St. Paul Companies is a group of companies providing property-liability insurance, reinsurance, and life insurance products and services worldwide.
  • The St. Paul ranked No. 171 on the Fortune 1000 list of largest U.S. companies and reported 1998 revenues of $8 billion.

Statistics:

  • Acquisition value: $37 million
  • Pacific Select Property Insurance Co. staff: 12
  • 1999 net written premiums for Pacific Select Property Insurance Co.: $18 million
  • 1999 net written premiums for GeoVera Insurance Co.: $40 million
  • St. Paul Companies revenue (1998): $8 billion (ranked No. 171 on the Fortune 1000 list)
  • Expected closing date: First quarter of 2000

Sources:

  • PRNewswire (Dec. 20)
  • The St. Paul Companies (NYSE: SPC)
  • GeoVera Insurance Co. (Concord, Calif.)
  • Fortune 1000 list of largest U.S. companies (1998)
  • The St. Paul Companies' 1998 annual report.

Read more