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PMA Capital Receives Regulatory Approval For Sale Of PMA Capital Insurance Co - Quick Facts

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

PMA Capital Corp. (PMACA) announced that it received regulatory approval from the Pennsylvania Insurance Department for the sale of PMA Capital Insurance Co, its former reinsurance and excess and surplus lines company, which was placed in run-off in 2003.

The company also announced that it executed an Amended and Restated Stock Purchase Agreement with Armour Reinsurance Group Ltd. for the sale of the run-off operations and closed on that sale. The company received $100 thousand for the shares of the run-off operations and agreed to contribute $13 million to the run-off operations and enter into two capital support agreements. The capital contribution included cash of $3 million and a note payable in two equal installments of $5 million in 2010 and 2011.

The company expects to record an after-tax charge of approximately $17 million, or $0.52 per share, with the closing of the transaction.

Vincent Donnelly, President and CEO, said, "The divestiture of this business removes a source of the volatility and uncertainty that negatively affected our results over the past several years".

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