PMA Sells Finite Business to Imagine
|NU Online News Service, Nov. 11, 3:22 p.m. EST
|The finite business, written by PMA Re, had an in-force value of$333 million as of Nov. 1, according to a PMA statement. Thetransaction is subject to the completion of due diligence anddefinitive documentation.
|Under the preliminary terms of the transaction, New York-basedImagine will compensate PMA based on the amount of in-forcebusiness assumed and renewed by Imagine, which PMA cannot currentlyestimate.
|"As we have previously stated, we are seeking to effect anorderly transition of our reinsurance business," said WilliamHitselberger, PMA's chief financial officer and treasurer. "Atransfer of our finite business will represent a significant stepforward in this process."
|"We believe that Imagine is a leader in the specialtyreinsurance business, and we are confident that this transactionwill provide our clients and producers with an experienced partnerfor the future."
|Earlier this week, PMA took a $150 million pretax charge toboost its reinsurance unit loss reserves. The company alsoannounced the departure of its two top executives, chief executiveofficer John Smithson and chairman Frederick Anton.
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