Paula Financial has entered into a definitive agreement to sell assets of its California-based insurance agency, Pan American Underwriters, to Ascension Insurance.
The transaction is subject to Paula Financial (PFCO) shareholder’s approval. Assuming a favorable vote by the shareholders, the asset sale is expected to close by the end of February, 2008.
Jeff Snider, chairman and CEO of PFCO, said: PFCO shareholders have been a patient group of investors. The sale of Pan American Underwriters will demonstrate the intrinsic value of our distribution business, allowing shareholders to achieve value recognition while providing significant new opportunity for the agency’s employees and managers.
Leonard Kline, president and CEO of Ascension, added: We are delighted to have Pan American Underwriters join our firm. This seasoned group of professionals we have met live up to their impeccable reputation in the specialized agricultural insurance market pioneered by Pan American since the 1940s. Pan American’s outstanding service culture mirrors Ascension’s mission to provide only superior products and services to our clients.