Everspan expects $11 million book gain on shell sale to Falvey

Everspan Group expects tangible book value to rise by about $11 million from the sale of Providence Washington, which it calls a redundant shell company, to Falvey Insurance Group, a marine managing general agent.

AM Best reported the agreement Oct. 23, describing it as an agreement to sell rather than a completed sale and giving no purchase price or closing date.

The $11 million would come from shedding an entity Everspan calls redundant, not from underwriting.

For allocators tracking insurer capital, AM Best did not say when the increase would be recognized or what Providence Washington carried on its balance sheet.