Applied Underwriters’ is embroiled in litigation across the country for, among other things, its use of unfiled and unapproved side agreements to its workers’ comp program. The California Department of Insurance called it bait and switch marketing tactics.
Despite all of the litigation and a spate of adverse decisions, the I’s are being dotted and the T’s are being crossed on the sale of Applied Underwriters. California Department of Insurance officials confirm that they are currently reviewing a formal application for the sale of the Berkshire Hathaway (BRK/A – NYSE) subsidiary.
CDI officials add that the application is not yet complete. They add as a work in progress the application is not available for public review and the details are being tightly guarded.
Word emerged earlier this year that Applied would be sold off. Some say that the reason is reputational others posit that the liabilities may just be too big.
The buyers reportedly are a group of insurers and a reinsurance firm backed by a hedge fund, but no official announcement has been made. Applied became a Berkshire subsidiary in 2006.