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):
December 29, 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)
222 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.
(a) The registrant issued the following press release on
December 29, 1999:
For immediate release
Acceptance Insurance Companies Inc. Announces Revised Credit Agreement and
Capital Reallocation
(Omaha, NE, December 29, 1999) Acceptance Insurance Companies Inc.
(NYSE:AIF) today announced that it has entered into a revised credit agreement
with Comerica Bank as the new agent bank and U.S. Bank and First National Bank
of Omaha as participating banks. The Company said lenders under the new credit
facility have provided a $31.4 million Letter of Credit, on a fully
collateralized basis, to secure certain commitments which may arise in future
years under one of the Company's crop reinsurance contracts. Company payments
of reinsurance premiums for additional coverage in future years will reduce
its commitments and the required Letter of Credit; the applicable reinsurance
agreement also can be commuted on an annual basis.
In addition, the Company announced the Nebraska Department of
Insurance approved repayment of a $20 million surplus note due from one of its
insurance company subsidiaries and an investment of $20 million in American
Growers Insurance Company, the Company's primary crop insurance company, by
one of the Company's property and casualty insurance subsidiaries.
Acceptance also said the recently formed special committee of its
Board of Directors determined there is not an immediate need to obtain the $20
to $40 million of additional capital offered by McCarthy Group and Directors
representing another major shareholder, but recommended the Board of Directors
continue to review the capital requirements of the business as it is
restructured.
Michael R. McCarthy, Chairman of the Company, stated, "The revised
credit agreement, surplus note payment and transfer of additional capital to
our primary crop insurance company have provided for the short term needs of
the Company. We are looking forward to continuing to build the profitable
segments of our Company." McCarthy also said the Company has initiated an
intensive financial and organizational review and added, "We expect this
review to provide the foundation for building a balanced specialty property
and casualty insurance business generating income from crop operations, other
property and casualty insurance operations and from the Company's investment
portfolio."
The Company said it is formalizing and implementing the previously
announced agreement with Markel Insurance Company related to property and
casualty business produced and serviced in its Scottsdale, Arizona office.
Acceptance Insurance is a specialized insurance company providing
crop, property and casualty insurance products throughout the United States.
American Agrisurance, the Company's wholly owned crop insurance marketing
subsidiary, is a widely recognized leader in the crop insurance industry.
For additional information contact:
John Martin Mike Gottschalk
President and Chief Executive Officer Secretary
402-344-8800 402-344-8800
<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/ J. Michael Gottschalk
J. Michael Gottschalk, Chief Legal Officer,
General Counsel and Secretary
December 29, 1999
