BRISTOL WEST TO ACQUIRE RELIANT INSURANCE
AND RELIANT CASUALTY INSURANCE
Acquisition Further Expands Bristol West's
Non-Standard Auto Insurance Product Line and
Geographic Reach; Fortifies Management Team
DAVIE, FL and CLEVELAND, OH, January
12, 2001 - Bristol West Insurance Group
today announced that its subsidiary Coast National
Insurance Company has signed a definitive agreement
to acquire Reliant Insurance Company and Reliant
Casualty Insurance Company, including certain
assets and renewal rights. The acquisition will
combine leaders in non-standard auto insurance.
Reliant Insurance and Reliant Casualty Insurance
are the non-standard automobile insurance operations
of Reliance Insurance Company. Based in Cleveland,
Ohio, the Reliant companies are licensed in
34 states.
Bristol West had approximately $240 million
in gross written premiums in fiscal 2000. Its
insurance companies are licensed in California,
Florida, Nevada, Pennsylvania, and Texas.
The Reliant renewal rights being purchased
under the agreement represent in excess of $150
million in annual gross written premiums. President
and CEO Jeffrey Dailey and the management of
the Reliant companies will join Bristol West
following the close of the transaction, which
is expected by the end of March 2001. At that
time, Mr. Dailey will become the Chief Operating
Officer of Bristol West. The transaction is
subject to regulatory approvals.
James R. Fisher, Chairman and Interim CEO of
Bristol West, said, "Due to the excellent
work of Jeff Dailey and his team, Reliant Insurance
and Reliant Casualty have rapidly become well-known
and respected names in non-standard auto insurance.
The combination of our operations will dramatically
expand Bristol West's high quality product offering
and allow us to offer it to customers across
a significantly larger geographic area, resulting
in dynamic growth. We welcome Jeff and his team,
and we are excited about the prospects this
transaction holds for Bristol West's future."
Mr. Dailey added, "Over the last four
years at the Reliant companies, we have built
one of the strongest teams in our industry,
and we feel confident that joining with Bristol
West will allow us to even better equip our
agents to address the needs of their customers.
In that regard, we are delighted to become part
of Bristol West, an established and highly regarded
player in the auto insurance arena, and we look
forward to working with their team to leverage
our franchises."
Perry Golkin, a member of Kohlberg Kravis Roberts
& Co., which acquired Bristol West in 1998,
said, "This transaction will allow Bristol
West to capitalize on its superior product offering
and customer service capabilities in order to
establish itself as a national leader in the
non-standard auto insurance marketplace. To
that end, the combined strengths of Bristol
West and the Reliant companies will provide
the management team with an ideal foundation
to spearhead significant growth well into the
future."
About Bristol West
Founded in 1973, Bristol West Insurance Group
is today one of the largest non-standard private
passenger automobile insurance underwriters
in the United States. Through its insurance
company subsidiaries, Coast National and Security
National, Bristol West is dedicated to providing
its customers with superior service by offering
competitive rates and unique plans that meet
their specific needs and expectations. Headquartered
in Davie, Florida, Bristol West was acquired
by an affiliate of KKR, the private investment
firm, and its management team in July 1998.
CONTACTS:
Bristol West
Molly Morse
Kekst and Company
212-521-4826
Reliance Insurance Company
Doug Morris
Gavin Anderson & Company, Inc.
212-515-1964
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