Newspaper article St Louis Post-Dispatch (MO)

Insurance Firm Here Ready to Go Public

Newspaper article St Louis Post-Dispatch (MO)

Insurance Firm Here Ready to Go Public

Article excerpt

Midwest Employers Casualty Co., an 8-year-old workers' compensation insurer, could join a growing list of publicly traded companies in St. Louis - if the stock market strengthens.

The offering date is "unclear," given recent weakness in the market, said Josephine A. Raimondi, the company's corporate counsel. An offering price for the stock hasn't been determined yet either, she said.

Midwest, also called MECC Inc., specializes in "excess" workers compensation insurance - coverage for claims that exceed certain limits. The company has grown rapidly as more employers decide to insure themselves because of rising workers compensation insurance rates.

MECC filed a registration statement in January for an initial public offering of 3 million shares. The company amended the statement in March.

Apparently some shares will be sold by the company and others by major shareholders, but the statement doesn't identify the selling shareholders or how much they will sell.

The registration statement says the company hopes to raise $30 million in the offering to add to its capital and surplus. The company expects to use another $2.7 million to repay debts. The statement doesn't list a target share price.

Midwest's gross premiums last year reached $82.1 million, up from $71.4 million in 1992. Profit rose to $15.5 million from $14.7 million. Profit has grown at a 25.8 percent compound rate since 1989, the document says.

MECC lists its main office as 13801 Riverport Drive in Maryland Heights, but its chief executive's office is in Cincinnati. …

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