SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 11, 1999
ACCEPTANCE INSURANCE COMPANIES INC.
(Exact name of registrant as specified in its charter)
Delaware 1-7461 31-0742926
(State of Incorporation) (Commission File Number) (IRS Employer Identification
Number)
225 S. 15th Street, Suite 600 North
Omaha, Nebraska 68102
(Address of principal executive offices) (Zip Code)
(402) 344-8800
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
Reference is made to the press release of Registrant, issued
on May 11, 1999, which is incorporated herein by this reference. A copy of
the press release is attached to this form 8-K as Exhibit 99.2.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
ACCEPTANCE INSURANCE COMPANIES
INC.
By /s/ Kenneth Coon
Kenneth C. Coon, Chief Executive Officer
May 11, 1999
<PAGE>
Exhibits:
- ---------
99.2 Press Release dated May 11,1999
EXHIBIT 99.2
ACCEPTANCE INSURANCE SELLING AUTO UNIT TO MILLERS
May 11, 1999, Omaha, NE
Acceptance Insurance Companies Inc. (NYSE:AIF) and Millers American
Group, Inc. announced today that they have entered into a definitive agreement
for the sale to Millers of Acceptance's non-standard automobile business,
including Phoenix Indemnity Insurance Company. The sale is subject to
customary regulatory approvals. Under today's agreement, Acceptance will
transfer all of its non-standard auto business and all outstanding stock of
Phoenix Indemnity to Millers in exchange for a $25 million cash payment.
In February, Acceptance announced its intention to withdraw from this
line of business as part of a restructuring to focus more heavily on the
Company's speciality property and casualty coverages and its crop division.
Millers is a diversified holding company based in Fort Worth, Texas with
non-standard auto and other insurance and insurance services interests.
Phoenix Indemnity employs approximately 135 people in its Phoenix,
Arizona home office. Through independent agents, it provides non-standard auto
insurance primarily in Arizona and several surrounding states. In 1998,
Phoenix had gross earned premium of approximately $46 million.
"We are pleased to have completed this additional step in implementing
the plan we announced earlier this year," said Acceptance Chairman and CEO,
Kenneth C. Coon. "We will continue to restructure our property and casualty
operations by retaining only business where our expertise has been consistently
recognized by our customers and which has been profitable for our
stockholders," he added.
Millers' President and CEO, David N. Thompson, noted, "Phoenix
Indemnity has an established franchise in its market and non-standard auto
business is a strength of Millers. We know our combined operations will
enhance the value of both companies to their independent insurance agents
throughout the Sunbelt States and elsewhere."
Acceptance is an A- rated property and casualty insurance company
concentrating on writing specialty coverages throughout the United States not
generally emphasized by standard insurance carriers. Following completion of
this sale, the Company's operations will be conducted through five insurance
subsidiaries and one insurance agency. The Company selects underwriting
specialties within the property and casualty industry that provide a
diversified portfolio of products, with the goal of producing underwriting
results better than the industry average.
Contact: Kenneth C. Coon David N. Thompson
Chairman & CEO President & CEO
Acceptance Insurance Companies Inc. Millers American Group, Inc.
402-344-8800 817-348-3410
