HCC Insurance to Buy Centris Group

Centris Group Inc. agreed to be acquired by HCC Insurance Holdings Inc. for about $171 million, nine months after the Costa Mesa-based company rejected a higher offer. Under the deal, Houston-based HCC will pay $12.50 for each Centris share and assume $25 million in debt to beef up its medical insurance business. The company made a $13.25-a-share bid in January, which Centris rejected as “grossly inadequate.” HCC had acquired 8% of Centris in preparation for making the earlier bid, then sold the stake after being rebuffed by Centris management. It renewed the buyout effort after a 27% drop in Centris shares. Separately, Centris said it will take a $13.5-million third-quarter charge to bolster reserves in its medical stop-loss business and other specialty insurance lines, and to increase reserves for some discontinued operations. Centris shares rose $1.19 to close at $11.50 on the NYSE.