Author Svea Herbst-Bayliss
BOSTON (Reuters) – Ides Capital Management has appointed two directors to the Safety Insurance Group and wants the company to repurchase, reduce costs and improve financial disclosure, according to a letter from Reuters.
Ides from New York wrote to a Boston-based company committee on Tuesday and said it was informing the nominees that his concerns about inflation and his plans for reform had been largely ignored in recent months.
“The serious failure of the Council to respond, the unpreparedness and the unwillingness to take action, the lack of open communication and the press release of the media all indicate that the Council has no intention of conducting constructive dialogue,” the letter said.
A Security Insurance Agent was not immediately available for comment.
Last week, Security Insurance, valued at $ 1.3 billion, announced a change in its administrative management system. cake.
The company, which operates property and personal injury services in Massachusetts, did not know who would take on the responsibilities.
“The changes announced by the Security Forces are very limited in terms of what the company needs to move forward,” Ides, who has a 1% stake in Security Insurance for one year, wrote in the letter.
In early December, Ides appointed insurance company administrators Olga Kondrashova and Farooq Sheikh to the Safety Insurance board, according to the letter.
The hedge fund outlined its objections in a letter Tuesday and called on the Insurance Fund to repurchase 10% of its shares and continue to redeem at a later date, establishing a system for all directors to stand for election annually, and change the accounting numbers of its advisers. .
It also argued that Security Insurance consists of quarterly receiving phones, which many retail companies do on a regular basis.
Security Insurance rates have risen by 14% in the last 52 weeks but remain SPDR S&P Insurance (NYSE 🙂 ETF, which gained 25%. Over the past three years, the share price of companies has risen 22% while the benchmark has risen 49%.
Ides was founded by Dianne McKeever and Rob Longnecker in 2015, and won when it pushed companies like. Arcosa (NYSE 🙂 Inc is Boingo Wireless (NASDAQ 🙂 to separate their boards. McKeever is chief financial officer at Ides.
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