a bid to cancel a buyout of a Michigan insurance agency, claiming the company misrepresented its financial condition.

In a statement, ASIG said that it had filed suit to rescind the acquisition of L&W Holdings, Inc., its wholly-owned subsidiary, RCA Syndicate No. 1, Ltd., an Illinois licensed insurance carrier operating on the Illinois Insurance Exchange, and the stock of Principal Management, Inc., an insurance programme development and management group headquartered in Michigan. In a related transaction, American Safety Insurance Group, Ltd.

acquired the stock of Pegasus Insurance, a Cayman Islands licensed insurance carrier. The cash and stock purchase was announced in January. ASIG said when RCA Syndicate No. 1, Ltd. filed its 1999 Annual Statement with the Illinois Department of Insurance in March 2000, the company first became aware there had been a material adverse change in the affairs and financial condition of the acquired companies from that represented by the sellers.

COURTS CTS