Alea North America Insurance Company agreed to sell its Delaware excess and surplus lines carrier to Praetorian Financial Group Inc. for at least $30 million, Alea Group Holdings (Bermuda) Ltd. announced Friday.
Under terms of the deal, total consideration will be between $30- and $36 million, Alea said.
Praetorian will purchase all of Alea’s shares in the E&S company–Alea North America Specialty Insurance Company (ANASIC)–in exchange for a cash payment of $4 million plus the policyholders’ surplus of ANASIC as of the closing date.
The group’s Alea Bermuda Ltd. affiliate will assume 100 percent of all business written by ANASIC prior to the closing date and will continue to administer the runoff of the inforce business as of the closing date.
The sale is subject to regulatory approval.
ANASIC, which has surplus lines authority in 38 U.S. jurisdictions, will be renamed Praetorian Specialty Insurance Company, according to a separate announcement from Praetorian.
Rod Fox, Praetorian’s chief executive officer, said, “The acquisition of a widely authorized surplus lines company will provide Praetorian and its business partners additional operating flexibility and complements our two broadly licensed admitted carriers.”