NEW YORK, Sept. 13, 2017 /PRNewswire/ -- Alleghany Corporation (NYSE: Y) today announced that its wholly-owned subsidiary Alleghany Insurance Holdings LLC, has signed a definitive agreement to sell Pacific Compensation Insurance Company (PacificComp), an underwriter of workers' compensation insurance, primarily in California, to CopperPoint Mutual Insurance Company for $150 million of total cash consideration. In connection with the transaction, an Alleghany subsidiary will continue to provide adverse development reinsurance cover on PacificComp's pre-acquisition claims. The transaction, which is subject to customary closing conditions and regulatory review and approvals, is expected to close at the end of the year.
Weston Hicks, President and chief executive officer of Alleghany, stated, "We are thrilled to have found a great home for PacificComp's employees and policyholders. I would like to thank Jan Frank for her leadership and the entire PacificComp team for their efforts over the past five years to build PacificComp into the successful California workers' compensation specialist it is today. As part of the CopperPoint family of companies, PacificComp will be ideally positioned to continue to grow profitably and to capitalize on new opportunities."
Goldman Sachs served as financial advisor and Willkie Farr & Gallagher LLP and Locke Lord LLP as legal advisors to Alleghany.
About Alleghany Corporation
Alleghany Corporation (NYSE-Y) creates value through owning and managing operating subsidiaries and investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany's property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., a national underwriter of property and liability specialty insurance coverages; CapSpecialty, Inc., an underwriter of commercial property, casualty and surety insurance coverages; and Pacific Compensation Corporation, an underwriter of workers' compensation insurance, primarily in California. Alleghany's subsidiary Alleghany Capital Corporation engages in and oversees strategic investments and acquisitions.
SOURCE Alleghany Corporation