GAHC Makes Headway with Beacon Proposal; Universal Deal Falters

Miami-based Golden Apple Holding Company (GAHC), a wholly owned subsidiary of Navigator Ventures Inc., signed a letter of intent with Ohio Farmer’s Insurance Company (OFIC). This will commence due diligence leading to the proposed acquisition by GAHC of all of the issued and outstanding capital stock of OFIC subsidiary, Beacon Insurance Company of America.

Meanwhile, the Board of Directors of Universal Insurance Holdings, also headquartered in Miami, Fla., announced it has advised Golden Apple, which had publicly shown interest in a transaction with Universal, that the Board did not believe Golden Apple’s proposal was in the best interest of company shareholders.

GAHC expects the due diligence in the Beacon transaction to be completed before the end of February 2003, if not sooner.

GAHC has also entered into a consulting arrangement with the Ward Group of Cincinnati, Ohio to assist in the operational evaluation of Beacon.

“We believe the successful acquisition of Beacon will enable GAHC to move closer to its goal of capitalizing and operating a commercial insurance carrier,” said Diane Perkins, President of GAHC. This can bring additional capacity to the Florida commercial insurance marketplace serving small and medium-sized companies.”

Beacon is a member of a nine-member pool led by Westfield Insurance Company. It is domiciled in Ohio and admitted to do business in Florida and a number of other states of interest to GAHC. Its current capital and surplus is approximately $5,000,000. Beacon was incorporated in 1981 in Ohio to be the corporate successor in the conversion of Beacon Mutual Indemnity Company, which was originally formed in 1931.

Universal’s Board indicated that it would be pursuing other acquisition opportunities and corporate objectives. The company said, however, it does not intend to publicly comment further on developments with respect to any acquisition activities unless and until the company enters into a binding agreement to conclude an acquisition transaction.