Corner of Berkshire & Fairfax Message Board

General Category => Archives => Topic started by: farnamstreet on April 18, 2010, 04:17:47 PM

Title: Question about Fremont
Post by: farnamstreet on April 18, 2010, 04:17:47 PM
I'm confused, perhaps someone can enlighten me (harry?)

First....
"The restriction, as amended in the House Insurance Committee, would apply only to Michigan-domiciled property/casualty insurers who write 100% of their premiums in the state and have 200 employees or fewer." (http://insurancenewsnet.com/article.aspx?id=180579&type=newswires)
But...
"Fremont Insurance said its strategic plan includes a dual focus on operating efficiencies and growth, including a planned expansion into Wisconsin and other neighboring states, as well as a goal of increasing direct premiums written to $100 million by 2013" (http://finance.yahoo.com/news/Fremont-Michigan-InsuraCorp-prnews-2898413331.html?x=0&.v=1)

So the law basically means that Fremont can't expand outside of Michigan and be protected? This means they won't be expanding into Wisconsin, correct?

* * *
Also, does the bill mean 66% +1 must vote for a takeover as stated here:
The bill would require a vote by a super-majority of two-thirds of shareholders plus one -- instead of the current 50% plus one threshold -- in order to approve the sale of an insurer when the board of directors opposes the deal (http://insurancenewsnet.com/article.aspx?id=180579&type=newswires)

or is it to elect directors not approved by the majority of the board (to the board) as reported here:
"The legislation would require approval of two-thirds of outstanding shares of a company to elect director candidates who are not backed by a majority of that company's board of directors" (http://www.detnews.com/article/20100414/BIZ/4140427/1361/Bill-seen-as-roadblock-to-takeover-of-Fremont-insurer)
Title: Re: Question about Fremont
Post by: nodnub on April 18, 2010, 07:12:51 PM
I'm confused, perhaps someone can enlighten me (harry?)

First....
"The restriction, as amended in the House Insurance Committee, would apply only to Michigan-domiciled property/casualty insurers who write 100% of their premiums in the state and have 200 employees or fewer." (http://insurancenewsnet.com/article.aspx?id=180579&type=newswires)
But...
"Fremont Insurance said its strategic plan includes a dual focus on operating efficiencies and growth, including a planned expansion into Wisconsin and other neighboring states, as well as a goal of increasing direct premiums written to $100 million by 2013" (http://finance.yahoo.com/news/Fremont-Michigan-InsuraCorp-prnews-2898413331.html?x=0&.v=1)

So the law basically means that Fremont can't expand outside of Michigan and be protected? This means they won't be expanding into Wisconsin, correct?

* * *
Also, does the bill mean 66% +1 must vote for a takeover as stated here:
The bill would require a vote by a super-majority of two-thirds of shareholders plus one -- instead of the current 50% plus one threshold -- in order to approve the sale of an insurer when the board of directors opposes the deal (http://insurancenewsnet.com/article.aspx?id=180579&type=newswires)

or is it to elect directors not approved by the majority of the board (to the board) as reported here:
"The legislation would require approval of two-thirds of outstanding shares of a company to elect director candidates who are not backed by a majority of that company's board of directors" (http://www.detnews.com/article/20100414/BIZ/4140427/1361/Bill-seen-as-roadblock-to-takeover-of-Fremont-insurer)


FarnamSt, I think this is the bill in question. 

http://legislature.mi.gov/doc.aspx?2010-SB-1174

Title: Re: Question about Fremont
Post by: farnamstreet on April 19, 2010, 07:55:56 AM
Thanks!