HCC Insurance Reduces Stake in Centris

HCC Insurance Holdings Inc. cut its stake in Centris Group Inc. to 1.7% from 7.8% after withdrawing its offer to buy the Costa Mesa medical insurer, according to a report filed Wednesday with regulators.

Houston-based HCC sold 711,200 Centris shares for $9.93 to $12.01 each from Jan. 29 to Feb. 2, according to the filing with the Securities and Exchange Commission. The property and casualty insurer now holds 200,000 Centris shares.

The sales started two days after HCC withdrew its offer to pay $143 million, or $13.25 a share, for the portion of Centris it didn’t already own. HCC said it decided to end the pursuit because Centris management wouldn’t negotiate.

On Wednesday, Centris shares fell 11.4%, or $1.25, to $9.75.

Centris sells insurance policies that cover medical bills in excess of $50,000 for employers who run their own group-health plans. Last week, Centris agreed to sell its USF RE Insurance Co. unit to Fund American Enterprises Holdings Co. for $97.5 million.