EIC Corporation LTD, parent of Exporters Insurance Company Ltd, has announced the sale of Radian Group Inc’s 36% interest in EIC to Island Partners LLC, an affiliate of Ecoban Finance Ltd. The sale will increase the share of Ecoban’s affiliates “ownership in EIC to 72% from 36%.
Another Ecoban affiliate, EFL, was one of the two leading common shareholders instrumental in the formation of EIC and has been active in directing the company since its inception in 1987.
According to Barry Westfall, speaking for Ecoban’s affiliates, “Exporters, with its superior risk adjusted capitalisation and experienced management team, is well positioned for growth and profitability in the future. Island Partners “purchase of a controlling interest in Exporters is a reflection of our continuing confidence in the company. the controlling shareholders intend to build on the present operating structure and grow the business. We are committed to serving the current members of Exporters, a group captive insurer, while expanding the client base. We look forward to working with Exporters “brokers and reinsurers.”
EIC has also accepted the resignation of Robert Svensk as EIC’s CEO and has asked him to serve as an advisor to the EIC board of directors. The rest of the management team at EIC and Exporters remains the same.
Frank Buziak, former president and CEO of Swiss Re’s subsidiary, Facility Insurance Corp, will assume the positions of president and CEO of EIC and Exporters. Buziak will also join the EIC and Exporters boards. Also joining these boards will be Harold Meyerman, a retired managing director of the Global Financial Institutions and Trade Group of Chase Manhattan, and John Hompe, a managing director with New York investment bank Keefe, Bryette & Woods.
Exporters is a group captive company comprising manufacturers, trading companies and financial institutions. Its mission, it claims, is to provide responsive and flexible credit and political risk insurance and reinsurance programmes to its members on a prudent and financially sound basis.