Centris Sells Unit to Help Pay Down Debt
Centris Group Inc. said it completed the sale of its USF Reinsurance Co. unit to Folksamerica Holding Co. for $92.5 million in cash and notes. The Costa Mesa insurance holding company plans to use $47.5 million of the proceeds to pay down debt.
Centris also said it is continuing discussions regarding the potential sale of the entire company. Several companies reportedly inquired about purchasing Centris after the insurer reported a 74% drop in fourth quarter profits earlier this year. Identities of the other companies have not been disclosed.
Folksamerica is a unit of New Hampshire-based White Mountains Insurance Group Inc., formerly known as Fund American Enterprises Holdings Inc.
The holding company’s stock dropped 6 cents a share to close at $9.94 in light New York Stock Exchange trading Tuesday.
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