Bermuda-based Mutual Risk Management Ltd. (MRM).

The Massachusetts insurer, American Policyholders' Insurance Co. (API), licensed in most US states, is a wholly owned subsidiary of American Mutual Liability Insurance Co. which is in receivership under the state insurance regulator, Massachusetts Division of Insurance.

But under court order, all existing liabilities will be transferred to a liquidating trust in connection with the API acquisition.

MRM chairman and CEO, Robert Mulderig, and president John Kessock Jr. stated: "The acquisition of an additional insurance company will accommodate our growing Program Business segment. An alternative admitted insurer to Legion Insurance Company, will allow us to offer our clients options in terms of rate and forms of filing and avoid conflicts among our producers of Program Business.

"The acquisition is a further indication of our commitment to be the premier service provider to this fast growing sector of the Alternative Market.'' The acquisition of API is subject to a number of conditions including court approval in Massachusetts and the approval of the Massachusetts Division of Insurance. MRM said that upon completion of the deal, API's name will be changed to Villanova Insurance Co.