Report: United Insurance Is Buying Applied Underwriters

Monday, July 1, 2019 | 0

The company poised to buy Applied Underwriters from Berkshire Hathaway is United Insurance Co., according to a filing with the California Department of Insurance.

Bahamas-based UIC plans to acquire Berkshire’s 81% stake in Applied Underwriters, along with a share of the company owned by two executives, the New York Post reported on Friday. The Post cited as its source a filing made late Thursday with CDI.

Berkshire Hathaway confirmed its plans to sell Applied Underwriters in February. At the time, the name of the buyer was not revealed. Berkshire bought Applied Underwriters in 2006.

A Berkshire official told WorkCompCentral at the time that AU was being sold because it competes with other workers’ comp insurance companies that Berkshire Hathaway fully owns. The official declined to comment on whether litigation over AU’s EquityComp program was a factor in the decision to sell.

AU has described EquityComp as a program for companies with premiums of more than $250,000 that are looking for flexible risk financing.

Applied Underwriters provides workers’ comp insurance through its North American Casualty Group, which consists of five carriers: California Insurance Co., Continental Indemnity Co., Illinois Insurance Co., Texas Insurance Co. and Pennsylvania Insurance Co.