Nevada insurer buys Calif. firm

Wednesday, July 3, 2002 | 11:07 a.m.

Employers Insurance Company of Nevada (EICN), the state's main workers' compensation insurer, today said it acquired the book of business of financially troubled Glendale, Calif.-based Fremont Compensation Insurance Group.

Terms were not disclosed. EICN said in March it was negotiating to buy Fremont as a way to give EICN access to new markets. This will help EICN better serve Nevada policyholders with operations in other states, EICN said.

EICN said it acquired all renewal rights to the ongoing book of workers' compensation business held by Fremont Comp. EICN will operate the new business -- with policies in California, Idaho, Utah, Montana and Colorado -- under the name Fremont Employers Insurance Company Inc.

EICN is a mutual workers' compensation insurance company with more than 11,000 Nevada policyholders. EICN said its annual policy revenue of about $120 million should double with the Fremont business.

Some 240 Fremont employees will join EICN, including five senior officers. Douglas Dirks retains his current positions as EICN president and chief executive officer.

"Every indication is that the California market is rebounding, therefore we believe that our acquisition of the Fremont business will provide a stable revenue base that benefits all of our policyholders," Dirks said in a statement.