Richard M. Jerger is from a prominent local family that "made a killing" in the mobile home insurance business
Phila. Consolidated buys Jerger, July 16, 1999
Philadelphia Consolidated Holding Corp. closed on the purchase of a Florida-based group of personal lines specialty insurance companies, a cash and stock deal valued at over $40 million.A commercial lines specialty underwriter, Philadelphia Consolidated bought The Jerger Co. Inc. of Pinellas Park, Florida, and its subsidiaries. The buy brings Philadelphia Consolidated about $70 million of mobile home, homeowners property and casualty and floor insurance premiums.Besides $20 million in cash and more than 1 million shares of stock, Philadelphia Consolidated agreed to a $5 million additional payment, depending on how well the new businesses perform.
TERRI'S FIGHT (Daily Thread 2 - November 1-2, 2003) (post 6)
How do you think we should go about checking to see if there was insider trading around the same time that Jerger Insurance being taken over by Philadelphia Consolidated?And shortly before that, Jerger took over a company run by Steve Beaty...how could we find out if there was insider trading on that?
Or are those types of takeovers done in a way that there would have been no insider trading?
I'm not saying that anyone we've mentioned here on FR was involved in "insider trading" (whatever that is), I'm just asking a general question about persons unknown.
Florida Trend, Sept 2000 v43 i5 p16
Beaty, 41, started as an industry outsider with his own company, Micro Business Systems, providing software to independent agents. For Pinellas Park-based The Jerger Co., he developed a pioneering program that allowed it to quickly identify mobile homes by ZIP code and park. Thus, it could grow into the largest independent mobile home insurer in the Southeast, even as it spread its risk so that a single tornado didn't mean catastrophe for Jerger. In 1986, he sold Micro to Jerger and became its chief information officer. When Jerger was sold this year, Beaty jumped to Bankers.
The Jerger Insurance subsidiaries gained Philadelphia Consolidated's A+ rating in after they were bought in 1999.
. In July 1999 the Company acquired The Jerger Company, Inc. for a total purchase price of $20.0 million in cash, 1,037,772 shares of the Company's common stock and a contingent additional cash amount of up to $5.0 million based upon future earnings of the acquired business.Of this purchase price, Mr. Thomas J. Jerger, a shareholder of The Jerger Company, Inc. and a former Director of the Company, [He was Vice-Director of Jerger and Sons in 1998; J. C. was added as Vice-Director in April of 1998, see here] received $6.5 million in cash and 338,404 shares of common stock of the Company. Mr. Jerger may also receive up to a maximum of $1.6 million of the contingent additional cash amount.
Pursuant to the acquisition agreement, the Company entered into an employment agreement with Mr. Jerger for a period of five years and a base salary of $210,000 ("Base Salary") commencing July 16, 1999. Mr. Jerger subsequently resigned his position with the Company effective November 22, 1999 and the Company entered into a severance agreement with Mr. Jerger agreeing to pay Mr. Jerger the Base Salary through the original employment period of five years. The Company utilized investment advisory services from McHugh Associates Inc. of which a board member, Thomas J. McHugh serves as President.
Is Philadelphia Consolidated based in Philadelphia? If so, there would be a connection between the Jergers, a Philadelphia company, and Michael. Is Michael from Philadelphia? I know he is from Pennsylvania, as it has been reported that he will be burying Terri there at some point. Could Michael have known the Jergers and Jodi before ever going to Florida? Or could he have had connections in Philadelphia and put them in touch with the Jergers, with the intent of buying them out? I don't know much about these sort of things, but isn't it possible to set up corporations with the express purpose of having other people buy you out and then splitting the profits? Isn't that one of the types of activities that RICO laws focus on?