Ascension Insurance has signed an agreement to acquire the assets of the California-based insurance agency, Pan American Underwriters, a wholly owned subsidiary of Paula Financial.

The board of directors of Paula Financial has voted to recommend the transaction for shareholder approval. Pending a favorable vote by Paula Financial shareholders, the asset sale is expected to close in February, 2008.

Leonard Kline, president and CEO of Ascension, said: We are delighted to have Pan American Underwriters (PAU) join our firm. This seasoned group of professionals offers an impeccable reputation in the specialized agricultural insurance market. In addition, the firm’s outstanding employees are dedicated to providing a standard of performance that mirrors Ascension’s mission to provide only superior products and services to our clients.

Jeffrey Snider, chairman and CEO of Paula Financial, added: Partnering with Ascension will allow PAU to further grow and expand operations while continuing to respect its service culture. Len Kline is a solution oriented CEO – and we are confident PAU will flourish under his leadership. All PAU employees will join Ascension at the close of the transaction.