PAULA Financial Announces Insurance Agency Acquisition

Business Wire, March 11, 1999

PASADENA, Calif.--(BUSINESS WIRE)--March 10, 1999--PAULA Financial Wednesday announced that its insurance agency subsidiary, Pan American Underwriters Inc., has agreed to purchase the insurance agency assets of the Sacramento and Stockton, Calif., offices of CAPAX Management & Insurance Services for approximately $3.2 million.

Pan American and PAULA will fund the transaction with cash and PAULA's prior existing interest in CAPAX securities. The transaction is expected to close in April, subject to certain conditions.

PAULA Financial is a California-based specialty underwriter and distributor of commercial insurance products, which, through Pan American Underwriters, is one of the largest insurance agencies specializing in workers' compensation products and services for the agribusiness industry.