Geovera FAQ EQ Insurance Services Online

We are pleased to announce that Freidman, Fleischer, & Lowe, LLC and Hellman & Freidman LLC, leading San Francisco-based private equity firms, have completed their acquisition of the CATRisk operation of The St. Paul Travelers, Inc., which conducts business through GeoVera Insurance Company and Pacific Select Property Insurance Company.

Going forward, the CATRisk Division will operate under the name GeoVera Holdings, Inc., and will be led by the current management team, headed by Kevin Nish, Chief Executive Officer, and Karen Padovese, Chief Operating Officer.

In a related development, we are pleased to announce that A. M. Best Company has assigned the rating of “A-“ (Excellent) to GeoVera Holdings, Inc. and our wholly owned subsidiaries, including GeoVera Insurance Company and Pacific Select Property.

Now that this acquisition is complete we remain committed to providing you with continued ongoing support of our existing products; continued financial stability and underwriting discipline; excellent claim services; and the opportunity to expand our product offerings.

Mr. Nish said: “ As we begin our new life as an independent, privately owned company we are pleased that we will continue to be well capitalized and in good position to expand our product offerings and enhance our service. We are looking forward to the many opportunities for growth which we will now be ideally positioned to pursue.”

As always, our two management teams will be working toward a seamless integration of GeoVera Holdings, Inc. into the Friedman, Fleischer & Lowe and Hellman & Friedman organization.

Frequently Asked Questions

Q: What is GeoVera Holdings, Inc.?

A: GeoVera Holdings, Inc. (formerly the St Paul Travelers CATRisk Division) is an insurance holding company which conducts its specialty excess and surplus personal lines property business under the GeoVera, Pacific Select Property and USF&G Specialty brands.

Q: Why was St. Paul Travelers CATRisk Division sold?

A: The business was not consistent with the strategic business direction of The St Paul Travelers.

Q: How much business does the GeoVera Holdings operation write each year?

A: GeoVera Holdings wrote approximately $240 million of direct written premium through the third quarter of 2005.

Q: How many employees are dedicated to the GeoVera Holdings business operation and will they be retained now that the acquisition is complete?

A: There are approximately 100 employees dedicated to the GeoVera Holdings business, primarily located in California, Maryland, and Wisconsin. It is expected that all employees will continue in their current positions.

Q: What will be the impact of the sale on agents and brokers?

A: Very little in the near term. Over the longer term, we see opportunity to develop new products and expand into new markets.

Q: Will there be any change to commissions and agent and broker agreements?

A: At this time, we do not anticipate any change to the compensation and contractual arrangements between the various GeoVera Holdings entities and its agents and brokers as a result of this acquisition.

Q: Will this acquisition change the underwriting practices of the various entities?

A: No changes are anticipated at this time.

Q: What will be the impact of this sale on the financial stability of the various GeoVera Holdings entities?

A: We understand the importance of financial strength so that an insurance company may provide underwriting capacity and claims paying ability to its customers and we are pleased that A. M. Best Company has assigned the rating of “A-“ (Excellent) to GeoVera Holdings, Inc. as well as our wholly owned subsidiaries, including GeoVera Insurance Company and Pacific Select Property.

Q: Where will the CATRisk operations be located?

A: The operations will continue to operate from the same locations as today.