Superior National Repays Debt to Chase

Calabasas-based Superior National Insurance Group Inc. said it paid back ahead of time $88.6 million of long-term debt to New York-based Chase Manhattan Bank that it borrowed in November. Superior National, the parent company of two California workers’ compensation insurers--Superior Pacific Insurance Group and Superior Pacific Casualty Co.--said it repaid the debt with reinsurance payments resulting from a 1991 agreement with Bermuda-based Centre Reinsurance Ltd. In exchange for a share of insurance premiums, reinsurance companies provide funds to insurance firms in the event that payments exceed a stipulated amount. The company will take a one-time charge of about $10.4 million for the debt payment. Superior National borrowed the money to buy reinsurance receivables for subsidiary Superior National Insurance Co. and to repay $71 million for reinsurance premiums to Centre Reinsurance. Superior National shares were unchanged at $13.625 on Nasdaq.