Premia Holdings has purchased Public Service Insurance Company (PSIC) and its subsidiary Western Select Insurance Company (WSIC) from the director of the Illinois Department of Insurance.
The takeover of both the companies follows after they were placed into rehabilitation by the state of Illinois in 2017.
However, other assets and liabilities related to PSIC were retained in and channelled to the Estate of PSIC, in rehabilitation.
The transaction was approved by the Illinois Department of Insurance along with presiding judge of the Chancery Division of the Circuit Court of Cook County Illinois who was supervising the rehabilitation of the PSIC Group.
Commenting on the deal, Premia CEO Bill O’Farrell said: “This was a new and elegant solution for the policyholders of Public Service and the fact that not a single claimant, policyholder, ceding company or reinsurer objected to this transaction is further evidence of the compelling solution in this matter and a real credit to the Illinois Department of Insurance.
“I am very pleased that we were able to deliver this solution to the Public Service Estate. It provides better capital support to Public Service’s policyholders and provides Premia a strong operating platform for additional US transactions.”
The transaction was completed last week.
Premia manages reinsurance business in Bermuda, the US and Europe, and focuses on sourcing, structuring and servicing run-off insurance companies.