Vesta Insurance Group, headquartered in Birmingham, Ala., announced it has settled its claim made in 1998 under the previous directors and officers liability insurance policy issued by Cincinnati Insurance Company for $16 million in cash. All other claims in the litigation with Cincinnati Insurance were dismissed and the litigation was terminated.
In addition, Vesta has entered into a new $30 million credit facility with First Commercial Bank of Birmingham, Ala. The agreement, which matures no earlier than June 30, 2005, replaces the previous credit facility with First Commercial.
Vesta, which previously owned 73 percent of American Founders Financial Corporation, also announced it has purchased the remaining 27 percent ownership from the minority owners for $12.9 million. Bob L. Nolen, senior vice president of Vesta Insurance Companies, has been named chairman and CEO.
Management also expects to update its view on the collectibility of certain non performing loans held by American Founders, and report changes, if any, in the carrying value of these loans when it releases fourth quarter and year-end results after the market closes on Feb. 27.
Vesta also announced that Tambra L. G. Bailie was elected to the company’s Board of Directors. Bailie spent 21 years with PricewaterhouseCoopers. She was a partner in the Assurance and Business Advisory Services practice with extensive experience in auditing insurance companies and reviewing insurance companies’ Securities and Exchange Commission filings.
Topics Lawsuits
Was this article valuable?
Here are more articles you may enjoy.
Chubb Q2 Net Income Up 24% to $2.2B 
Progressive Q2 Net Income Skyrockets Over 320% 
Soccer Officials Arrested After Melee That Damaged Hard Rock Stadium in Miami 
Oscar Mayer Wienermobile Rolls Over in Chicago Highway Crash 
