Republic Reaches Agreement With FirstComp Underwriters Group
June 26 2006 - 6:51PM
PR Newswire (US)
DALLAS, June 26 /PRNewswire-FirstCall/ -- Republic Companies Group,
Inc. (NASDAQ:RUTX) ("Republic") announced today that it has entered
into a managing general agency agreement with FirstComp
Underwriters Group, Inc. ("FirstComp") -- making the Omaha-based
monoline workers' compensation group one of Republic's key
relationships. Under terms of the contract, certain Republic
insurance subsidiaries will serve as policy issuing insurers for
business produced and administered by FirstComp. The FirstComp book
of business to be written by the Republic companies is estimated to
be $80 million of gross premium in the 2006/2007 underwriting year.
These risks are written through FirstComp's network of independent
insurance agencies for small- to medium-size businesses primarily
in rural and suburban towns of several states nationwide.
Consistent with the operating strategy of Republic's Program
Management segment, Republic will cede a portion of the business
under a new quota share reinsurance agreement. For the 2006/2007
year of account, the Republic companies will retain 35% of the net
premium and underwriting risk of FirstComp's production. The
Republic companies will receive fee income for the 65% quota share
reinsurance placements. "We are excited about the relationship with
FirstComp, a company that has a history of high growth and
exceptional results under experienced management," said Parker
Rush, President and Chief Executive Officer of Republic.
"FirstComp's strategy of focusing on smaller policyholders
complements Republic's general operating philosophy. We believe the
addition of FirstComp enhances our mix of casualty exposures and
provides an opportunity for our companies' entry into several new
states." About FirstComp FirstComp Underwriters Group provides
workers' compensation insurance coverage for more than 50,000 "main
street" businesses through more than 5,200 independent insurance
agencies nationwide. With headquarters in Omaha, NE and an East
region office in Providence, RI, the company currently operates in
25 states. Visit http://www.firstcomp.com/ for more information.
About Republic Republic Companies Group, Inc., through a group of
insurance companies and related entities, provides personal and
commercial property and casualty insurance products. In its
Independent Agents segments, Republic distributes these products to
individuals and small to medium-size businesses through a network
of independent agents primarily in Texas, Louisiana, Oklahoma, and
New Mexico. In its Program Management and Insurance Services
segments Republic capitalizes on its unique combination of charters
and licenses to develop and manage target-niche insurance products
that are distributed through managing general agents in many
additional states. Republic is rated A- (Excellent) by A.M. Best
Company, Inc. with a stable outlook. The company completed its
Initial Public Offering in August 2005. Visit
http://www.republicgroup.com/ for more information. Precautionary
Statement Regarding Forward-Looking Information Investors are
cautioned that statements which relate to the future are, by their
nature, uncertain and dependent upon numerous contingencies --
including political, economic, regulatory, climatic, competitive,
legal, and technological -- any of which could cause actual results
and events to differ materially from those indicated in such
forward-looking statements. Additional information regarding these
and other risk factors and uncertainties may be found in our
filings with the Securities and Exchange Commission (available at
http://www.sec.gov/ ). Unless otherwise required by law, we
undertake no obligation to publicly update or revise any forward-
looking statement, whether as a result of new information, future
developments or otherwise.
http://www.newscom.com/cgi-bin/prnh/20050801/REPUBLICLOGO
http://photoarchive.ap.org/ DATASOURCE: Republic Companies Group,
Inc. CONTACT: Michael E. Ditto, Esq., Vice President, General
Counsel and Secretary of Republic Companies Group, Inc.,
+1-972-788-6000 Web site: http://www.republicgroup.com/
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