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):
April 12, 2000
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)
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Item 5. Other Events.
(a) The registrant issued the following press release on
April 12, 2000:
ACCEPTANCE INSURANCE COMPANIES INC. AND CLARENDON INSURANCE
GROUP SIGN DEFINITIVE AGREEMENT FOR SALE OF
REDLAND INSURANCE COMPANY
(Omaha, NE and New York, NY, April 12, 2000) Acceptance Insurance
Companies Inc. (NYSE: AIF) and Clarendon Insurance Group announced today that
they have signed a definitive contract for Clarendon's purchase of Redland
Insurance Company. The contract is consistent with the agreement in principle
announced January 26, 2000.
Under the contract signed today, Clarendon National Insurance Company
will purchase the stock of Redland for cash and Acceptance will retain all
Redland assets associated with Acceptance's crop insurance operations.
Acceptance retains an option to repurchase Redland under certain circumstances
and will be appointed the exclusive representative of Redland for the business
Acceptance currently writes through Redland. The parties will now seek various
regulatory approvals, and hope to conclude the sale during the second quarter.
Upon closing Redland will cede most of its business to Clarendon National
Insurance Company, which maintains the rating of A (Excellent) from A.M. Best
Company.
Ralph Milo, Chairman and Chief Executive Officer of the Clarendon
Insurance Group said, "We are pleased to have reached this important milestone
in our creation of a unique new partnership for the development of specialty
program business. We are looking forward to working with Acceptance to develop
the full potential of Redland Insurance Company."
Acceptance President and Chief Executive Officer John E. Martin noted,
"This agreement will bring exciting growth potential to the agents and
customers of Redland Insurance Company, Acceptance and Clarendon. We believe
this is an important step in providing Acceptance with the resources necessary
to expand our core lines of profitable specialty property and casualty
business."
Clarendon Insurance Group, a subsidiary of Hannover Reinsurance, the
world's fifth largest reinsurer, is a nationally recognized leader in program
business. Currently operating through various insurance company subsidiaries,
Clarendon has long-standing relationships with highly specialized managing
general agents and a record of consistent operating profitability.
Acceptance Insurance Companies Inc. is an insurance holding company
providing specialized 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.
Contacts:
Stephen T. Fitzpatrick Ming-I Huang
Senior Vice President Senior Vice President
Acceptance Insurance Companies Inc. Clarendon Insurance Group
800 228 7217 212 805 9700
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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
April 12, 2000
