Paula Strengthens Reserves, Settles With Reliance

By: Workers' Comp Executive - The journal of record for the workers' comp community in California.

PASADENA -- As expected, Paula Financial Co., (Nasdaq: PFCO) has reached a settlement with Reliance Insurance Co., a fronting carrier in one of the ill-fated Unicover Managers Inc. pools.Reliance, (NYSE: REL) which has been working out settlements with both its retrocessionaires and the primary workers' comp carriers it reinsured with its buy-down treaties, agreed to pay back Paula $42 million in cash in exchange for terminating the treaty.In an another financial action, and one not connected t

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