Jacobs Financial Group Inc. (JFG) said it has acquired all ofthe issued and outstanding stock for West Virginia Fire andCasualty Company (WVFCC) from The Celina Mutual Insurance Companyof Celina, Ohio.

Charleston, W.Va.-based JFG, a holding company, received finalapproval from the West Virginia Department of Insurance on Dec. 23,and closed on the deal on Dec. 30.

JFG said it paid $2.9 million for the insurer, subject to postclosing costs. WVFCC held only licenses, securities and cash at theclose of the deal. Celina withdrew all outstanding insurancepolicies and assumed all liabilities.

WVFCC will operate as a surety to businesses requiring financialassurance as a condition of their operations, such as thoseinvolved in the coal, oil and gas industries. JFG said operationswill be in West Virginia and expand from there.

“This acquisition marks the culmination of literally years ofplanning to bring an insurance company under the JFG umbrella andalso a new beginning for JFG,” said John M. Jacobs, president ofJFG, in a statement. “With the support of governmental agencies inWest Virginia, the West Virginia Coal Association, and otherfriends and financial supporters, we are now positioned toimplement a business plan that will respond to the surety needs ofthe coal and other regulated industries, with bonding programs thatare both cost effective and protective of the public interest.

He said that WVFCC will act as a surety, implementing programsthat will rely on sound underwriting and an understanding of thecoal and oil and gas industries.

According to National Underwriter's HighlineData, WVFCC reportednet premium written of $7.96 million in 2004.