Gainsco to Buy Insurance Operations in Upper Midwest

Fort Worth, TX-based Gainsco says it has executed a definitive agreement to acquire Tri-State, Ltd., a privately-owned insurance operation specializing primarily in underwriting, servicing and claims handling of nonstandard private passenger automobile insurance in Minnesota, North Dakota and South Dakota.

``The acquisition of Tri-State begins the planned geographic expansion of our nonstandard private passenger automobile business from our base established last year with the acquisition of the Lalande Group in Miami, Florida,'' said Glenn Anderson, Gainsco's president and chief executive officer. ``Tri-State is a profitable niche distributor and insurer of $16 million of annual premium, the bulk of which is nonstandard private passenger automobile business in the upper Midwest, and is very capably led by its president and founder, Herb Hill.''

``Following the completion of this transaction, Herb will be teaming up with Mac Johnston and Carlos De la Torre of the Lalande Group to implement a dynamic business growth strategy. Tri-State will serve as a regional marketing hub from which we expect to expand into additional targeted states. Simultaneously, we plan to integrate all processing of Tri-State business with Lalande's underwriting and claims systems to maximize service and cost efficiency. As part of this process, it is anticipated that Tri-State's agents will be converted onto Lalande's developing internet-based, real-time, policy quoting and issuance system in the year 2000. We are truly excited to be welcoming Herb and his team to GAINSCO,'' Anderson said.

Tri-State operates a managing general agency, a motor vehicle driving records service company and an insurance subsidiary, Midwest Casualty Insurance Company. Tri-State was incorporated in 1980 and currently markets nonstandard private passenger insurance through over 320 retail agencies in its three key states and commercial automobile insurance in four states. After completion of the transaction, Tri-State will continue to operate at its current locations to develop personal and commercial lines business.

``We are looking forward to joining the Gainsco team,'' said Herb Hill, a 28-year veteran of the insurance industry and president of Tri-State. ``We've developed a strong niche in our region, and have captured about a ten percent market share in the nonstandard private passenger automobile segments we serve."