Jacobs Financial Group Acquires West Virginia Fire and Casualty Co.

Jacobs Financial Group Inc. has acquired all of the issued and outstanding stock of West Virginia Fire and Casualty Company (WVFCC) from The Celina Mutual Insurance Company (Celina) of Celina, Ohio. The transaction had received final regulatory approval from the West Virginia Department of Insurance on Dec. 23, 2005.

WVFCC is a licensed property and casualty insurance company in West Virginia, Ohio and Indiana. In accordance with the application of Jacobs Financial Group (JFG) approved by the insurance regulatory authorities, WVFCC will pursue a business plan of operating as a surety to businesses requiring financial assurance as a condition of their operations, such as those involved in the coal and oil and gas industries. Initially, operations will be in West Virginia, with expansion into other states as necessary regulatory approvals are obtained.

Under the terms of purchase, at closing WVFCC held only licenses, securities and cash. Celina had withdrawn all outstanding insurance policies and assumed all liabilities arising thereunder. The final purchase price was $2,900,000, subject to post closing adjustments. Financing of JFG’s acquisition of WVFCC was derived from the private placement by JFG of preferred stock and warrants to acquire its common stock. In addition, immediately prior to the acquisition, over $3,600,000 of outstanding debt of JFG elected to convert into such equity securities of JFG.

JFG, the successor to NELX, Inc. by reincorporation merger, is a West Virginia based holding company engaged in each of the investment advisory business through its wholly owned subsidiary Jacobs & Company, the insurance strategies and agency business through its wholly owned subsidiary FS Investments, Inc. and its subsidiary Triangle Surety Agency and now the surety business through its wholly owned subsidiary West Virginia Fire and Casualty Company.

Topics Mergers & Acquisitions Legislation Virginia West Virginia Casualty