ALLEGHANY TO BUY EMPLOYERS DIRECT FOR $195M

New York-based p/c group Alleghany Corp has agreed to buy Employers Direct Corp, the California-based direct writer of workers' compensation cover, for around $190m in cash. EDC president and CEO James Little, along with other managers and EDC’s 175 employees, will remain with the company. Alleghany CEO Weston Hicks said that “we believe that EDC’s unique operating model has good growth prospects”, noting also that the addition of a workers’ comp business to Alleghany’s range would “provide balance to our risk portfolio”. In 2005 EDC had net premium income of $155.9m and a combined ratio of 82.5%.