USF&G completes Titan acquisition

MARYLAND WATCH

December 23, 1997

USF&G Corp. completed its acquisition of Titan Holdings Inc. in a deal valued at $221 million, the company said yesterday.

The Baltimore-based insurer will more than double its position in two specialty property and casualty businesses with the acquisition: insuring riskier drivers and insuring small and medium-size towns and counties.

The merger was approved yesterday by Titan's shareholders, who met in San Antonio, Texas, where the company is based.

Shares of USF&G stock closed at $22.125 yesterday, down 31.25 cents.

Titan's shareholders will receive $10.94 in cash and 0.4951 shares of USF&G common stock for each Titan share, for a total valuation of $21.88 a share. USF&G will issue 5 million shares in conjunction with the transaction.

Titan, which has about $405 million in assets, wrote premiums worth $199 million in the 12 months ended June 30, 1997.

Its biggest business is underwriting risky drivers, and it is Michigan's largest "nonstandard" auto insurer.

It is USF&G's largest deal since the $14.9 billion-asset insurer began a company-wide restructuring in 1990.

Pub Date: 12/23/97

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