Core specialty announces purchase of security & alarm business renewal rights and related unearned premium reserve from conifer holdings, inc.

Cincinnati, sept. 14, 2023 (globe newswire) -- core specialty insurance holdings, inc. (“core specialty”) announced today that core specialty and its subsidiaries have entered into a series of transactions with conifer holdings, inc. (“conifer”) to acquire conifer's security & alarm business. the security & alarm business provides general liability, excess/umbrella, and selected other coverages to the niche security guards, alarm contractors, private investigators, and trade contractors markets. as part of the transaction, core specialty has agreed to (1) pay conifer $2.5 million in cash for the exclusive right to underwrite the security & alarm business through october 2025, and the renewal rights to such business thereafter, (2) assume the unearned premium reserve associated with the security & alarm business, and (3) purchase $5.0 million of conifer's 9.75% senior unsecured notes due 2028 (the “new notes”) which are being offered on a reasonable best efforts basis pursuant to a conifer registration statement on form s-4 and form s-1, as amended, including a prospectus, which was filed with the securities and exchange commission (the "sec") and was declared effective by the sec. policies for the security & alarm business will be issued by core specialty insurance subsidiaries, which are rated a- xii (excellent) by am best, effective with the transaction closing. the security & alarm business produced $48 million of gross premiums written in 2022.
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