Nevada firm eyes acquisition

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Wednesday, March 20, 2002 | 11:07 a.m.

Employers Insurance Company of Nevada (EICON) has been granted exclusive negotiating rights to acquire Fremont Compensation Insurance Group (Fremont Comp), the workers' compensation division of Fremont General Corp., the Santa Monica, Calif-based Fremont said today. The companies hope to complete a deal before June 30.

Douglas Dirks, president and chief executive officer of EICON, said today Fremont Comp has endured financial problems in recent months and its current operations have been limited to five Western states, primarily California.

Dirks said acquiring Fremont Comp would give EICON access to new markets, experienced staff members and an improved computer system. He could not estimate a dollar value for the proposal.

Insurance industry watchdog A.M. Best Co. said Fremont General Group was the ninth-largest writer of workers' compensation insurance in the United States in 2000. EICON, with assets of $1.3 billion at the end of last year, controls about 30 percent of Nevada's workers' compensation market.