Transamerica Progressing in Plan to Shed Subsidiary

Transamerica Corp. said it has reached a definitive agreement to sell a majority interest in its Woodland Hills-based property and casualty insurance subsidiary, Transamerica Insurance Group, to the public via a stock offering.

The initial public offering, which the San Francisco-based company announced in November, is expected to occur by early spring. Transamerica said last week that it plans within 10 days to file a registration statement with the Securities and Exchange Commission.

Jon Rotenstreich, former president of Torchmark Corp., will become chairman and chief executive of the newly public company when the offering is complete. Don Hutson, former chairman and chief executive of Maryland Casualty, will be the president and chief operating officer.

Transamerica Insurance had assets of $4.8 billion as of Sept. 30, 1992. The subsidiary has 65 offices around the country. The proposed offering is part of Transamerica’s previously reported strategy of shifting its focus to financial services and life insurance.