Alleghany Corporation Announces Sale Of Pacific Compensation Insurance Company

By a News Reporter-Staff News Editor at Insurance Weekly News -- Alleghany Corporation (NYSE: Y) announced that its wholly-owned subsidiary Alleghany Insurance Holdings LLC, has signed a definitive agreement to sell Pacific Compensation Insurance Company (PacificComp), an underwriter of workers' compensation insurance, primarily in California, to CopperPoint Mutual Insurance Company for $150 million of total cash consideration. In connection with the transaction, an Alleghany subsidiary will continue to provide adverse development reinsurance cover on PacificComp's pre-acquisition claims. The transaction, which is subject to customary closing conditions and regulatory review and approvals, is expected to close at the end of the year.

Weston Hicks, President and chief executive officer of Alleghany, stated, "We are thrilled to have found a great home for PacificComp's employees and policyholders. I would like to thank Jan Frank for her leadership and the entire PacificComp team for their efforts over the past five years to build PacificComp into the successful California workers' compensation specialist it is today. As part of the CopperPoint family of companies, PacificComp will be ideally positioned to continue to grow profitably and to capitalize on new opportunities."

Goldman Sachs served as financial advisor and Willkie Farr & Gallagher LLP and Locke Lord LLP as legal advisors to Alleghany.

Keywords for this news article include: Alleghany Corporation.

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