Xerox sells insurance unit
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September 9, 1997: 9:50 a.m. ET
Management-led group paying $612M for The Resolution Group
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NEW YORK (CNNfn) - Xerox Corp. said Tuesday that it will sell The Resolution Group Inc., an insurance unit, for $612 million.
An investor group led by Michael A. Coutu, currently CEO of TRG, will acquire the stock of TRG for $150 million cash and $462 million in performance-based instruments.
The sale is subject to regulatory approval, and Xerox expects it to be completed by the end of the year.
TRG's sale is the latest in Xerox's strategy to disengage from its financial services and focus on its core document processing business.
Xerox discontinued its insurance operations in 1995, reorganizing its property and casualty insurance units into seven independent insurance groups under the name Talegen Holdings Inc. It then began putting those units on the selling block.
Chicago-based TRG was formed to manage the claims run-off and reinsurance collections associated with Talegen.
Over the summer, Xerox sold Coregis Group, Inc. and Industrial Indemnity Holdings, Inc. Only two insurance groups are still up for sale; Crum & Forster Insurance and Westchester Specialty Group.
-- Randy Schultz
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Xerox
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