Securitas Capital Acquires Providence Washington From Baloise Insurance Group

The Baloise Insurance Group has announced the sale of its U.S. subsidiary, the Providence Washington Insurance Group, to Securitas Capital, a global private equity investment firm dedicated to making investments exclusively in the insurance sector. The transaction is subject to regulatory approval and is expected to close in the third quarter of 1998. Terms of the sale were not disclosed.

The sale of Providence Washington is part of Baloise's worldwide strategic plan to withdraw from non-core geographic areas and products in order to focus on its primary insurance business in Switzerland, Germany, Belgium, Luxembourg and Austria. Since December 1996, the Basel, Switzerland-based company has sold its small insurance operations in France and Italy as well as its global reinsurance business.

Founded in 1799, Providence Washington is one of the oldest property casualty insurance companies in the U.S. The Company is a regionally focused provider of commercial and personal insurance products sold exclusively through a network of independent agents. Providence Washington employs approximately 300 people and in 1997 had gross premiums written in excess of $200 million

"The sale of Providence Washington represents another significant step towards accomplishing our strategic objective of focusing on core markets and fields of business," the Company stated. "The sale to Securitas Capital allows us to implement our new strategy while ensuring that Providence Washington will continue to operate as an independent company with the current management team and strategic focus."