Majestic Insurance To Be Placed Into Conservatorship

Bermuda-based Majestic Capital Majestic Capital Ltd. announced that it was unable to timely file its annual report on Form 10-K with the Securities and Exchange Commission (SEC), and it is likely that the California Department of Insurance will place its primary insurance subsidiary, Majestic Insurance Co., into conservatorship on or about April 20, 2011

Majestic Capital filed Form 12b-25 with the SEC on March 31, 2011, requesting a 15-day extension to file its annual report for the year ended Dec. 31, 2010. However, the company said it but will not be able to file its Form 10-K within the 15 day extension period due to:

• Its expectation that CDI will place Majestic Insurance Company into conservatorship on or about April 20, 2011;

• The need to evaluate Majestic Capital’s business and financial position in view of the foregoing and its impact on various disclosures to be made in Majestic Capital’s Annual Report on Form 10-K; and

• In light of the above factors, the additional time required to allow the company’s independent registered public accountants to complete the audit of the company.

Majestic Capital, through its subsidiaries, is a specialty provider of workers’ compensation insurance products and services. Seventy-six percent of the company’s business is written in California, with the remainder written in New York and New Jersey (20 percent), and other states (4 percent).

In March, Majestic Capital terminated its merger agreement with Bayside Capital.