UPDATE ON PAWTUCKET MUTUAL:

On the May 1 anniversary of its receivership, Pawtucket Mutual Insurance Co. remained under state control, not writing any new or renewal business but still handling claims. Rhode Island officials have not given up hope of finding a buyer and are now hoping to close a deal by the end of June. As she has from the start of the company’s troubles, Rhode Island Director of Business Regulation Marilyn Shannon McConaghy remains committed to attracting a buyer to bid on the value of the company’s multi-state licenses, agency force, experienced employees and headquarters operation in her state. McConaghy has extended the bid process to May 21, which is about a week after she expects to receive the latest audited financial report on the Pawtucket and its subsidiary, Narragansett Insurance Co., from Ernst & Young. If all goes as planned, she hopes to identify a winning bidder by May 28, proceed with court approvals including a conversion to a stock company if required as part of the purchase, and close a deal by June 30, 2004. “This remains an economic development opportunity,” McConaghy said, citing the benefits to the state of keeping jobs and attracting another provider into the insurance marketplace. She maintains there are no “downsides” to the state continuing to seek a buyer as financial reports indicate that its reserves are adequate and the insurer could be run-off if needed without reaching into the state’s guaranty fund or assessing other insurers. She said there remain a number of prospective acquirers “each with a different scenario” that have filed letters of intent. She declined to identify the names of possible suitors.