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Frontier Insurance Co. to stop selling insurance
Three months after Frontier Insurance Co. moved the trading of its common stock to the OTC Bulletin Board following heavy losses and staff reductions, the company has announced it will cease selling new policies and renewing current business.
"Our decision to withdraw from the marketplace was a difficult one, but we believe it to be in the best interests of all our constituents," says Frontier President Mark Mishler. "Frontier is working on strategies to continue its business during the period Frontier is not assuming risk. It is our goal to make certain that the policyholders continue to be serviced and protected."
Headquartered in Rock Hill, N.Y., Frontier Insurance Co. is the primary operating subsidiary of Frontier Insurance Group Inc., a company that sells business insurance products to niche markets, such as child care centers, children's summer camps, social service agencies, crane operators, and pest control firms. Frontier's core businesses also include medical malpractice coverage for dentists and psychiatrists.
|Following news of the withdrawal, Frontier stock was trading at 5 cents a share.|
According to Frontier, the company will concentrate on its managing general agents business, bail bonds, and its third-party administrator claims unit. Following news of the withdrawal on March 15, 2001, Frontier stock (FTER) was trading at 5 cents a share, down from a 52-week high of $2.06 cents a share. In November, the company reported a net loss of $2.19 per share for the third quarter of 2000.
Frontier's latest business move comes on the heels of two previous market withdrawals. Last year, Frontier yanked its two other insurance companies — United Corp. and Western Indemnity — out of the market. Frontier Pacific is Frontier's only insurance unit still writing business.
Earlier this month, three top level Frontier executives resigned due to reduced business; Patrick Kenny, executive vice president and chief financial officer; Douglas Moat, executive vice president; and Richard Seyffarth, executive vice president and chief investment officer.