---------------------
| OMB APPROVAL |
|---------------------|
|OMB NUMBER: 3235-0145|
UNITED STATES |EXPIRES: |
SECURITIES AND EXCHANGE COMMISSION | OCTOBER 31, 2002 |
Washington, D.C. 20549 |ESTIMATED AVERAGE |
|BURDEN HOURS |
|PER RESPONSE ...14.90|
|---------------------|
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
Insurance Management Solutions Group, Inc.
------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
-------------------------------------------------------------
(Title of Class and Securities)
458045101
------------------------------------------------------------
(CUSIP Number)
Bankers Insurance Group, Inc.
Attn: Robert G. Southey, Esq.
Secretary and General Counsel
360 Central Avenue
St. Petersburg, Florida 33701
(727) 823-4000
With a copy to:
Thomas J. Dougherty, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
One Beacon Street
Boston, MA 02108
(617)573-4800
------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
August 5, 2002
------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
o If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Sections 240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box. [ ]
o Note: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Section 240.13d-7
for other parties to whom copies are to be sent.
o The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
o The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
(Continued on following pages)
Page 1 of 20 Pages
SCHEDULE 13D
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers Insurance Group, Inc.
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
HC
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers Insurance Company
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
3,528,455 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
3,528,455 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,528,455 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
28.7%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IC
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers Security Insurance Company
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
4,821,429 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
4,821,429 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,821,429 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
39.3%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IC
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers Financial Corporation
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers International Financial Corporation
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Bankers International Financial Corporation, Ltd.
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
OO
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Ansbacher (Cayman) Limited, as trustee for Bankers
International Financial Corporation II Trust
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
OO
------------------------------------------------------------------------------
CUSIP No. 0001063167
------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Independent Foundation for the Pursuit of Charitable
Endeavors, Ltd.
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP:
(a) (x)
(b) ( )
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
AF
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) ( )
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman
------------------------------------------------------------------------------
7. SOLE VOTING POWER
0
------------------------------------------------------------------------------
8. SHARED VOTING POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
8,349,884 (see item 5)
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,349,884 (see item 5)
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN
SHARES ( )
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
68.0%
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
OO
------------------------------------------------------------------------------
Note: This Amendment No. 2 to Schedule 13D amends the Statement on
Schedule 13D dated May 24, 2002 (the "Schedule 13D"), as amended by
Amendment No. 1 dated July 19, 2002 ("Amendment No. 1"), filed on
behalf of (i) Bankers Insurance Group, Inc., a Florida corporation
("BIG"); (ii) Bankers Insurance Company, a Florida corporation and
wholly-owned subsidiary of BIG ("BIC"), as a direct beneficial
owner of Common Stock; (iii) Bankers Security Insurance Company, a
Florida corporation and jointly-owned subsidiary of BIG and BIC
("BSIC"), as a direct beneficial owner of Common Stock; (iv)
Bankers Financial Corporation ("BFC"), Bankers International
Financial Corporation ("BIFC") and Bankers International Financial
Corporation, Ltd. ("BIFC Ltd."), all of which are Florida
corporations, except BIFC Ltd., which is a Cayman Islands
corporation, as the direct, indirect and ultimate parent
corporations, respectively, of BIG; (v) Ansbacher (Cayman) Limited
("Ansbacher"), as trustee of the Bankers International Financial
Corporation II Trust, a discretionary charitable trust which
includes all of the outstanding shares of BIFC Ltd.; and (vi)
Independent Foundation for the Pursuit of Charitable Endeavors,
Ltd., ("IFPCE"), a not-for-profit Cayman company, which possesses
certain discretionary powers to direct Ansbacher's ultimate
disposition of the shares of BIFC Ltd., relating to the Common
Stock (as defined in the Schedule 13D).
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 of the Schedule 13D is hereby amended by adding the
following (capitalized terms used, but not otherwise defined, herein have
the meanings ascribed thereto in the Schedule 13D or Amendment No. 1):
In the event that the Issuer or BIG take any of the actions set
forth in Item 4 below, BIG anticipates that they would fund any such actions
from a combination of sources, including funds from affiliates, working
capital, funds borrowed from banks and/or funds from other sources that may
be or become available to them prior to the consummation of any transaction
contemplated by Item 4 below.
Item 4. Purpose of the Transaction.
Item 4 of the Schedule 13D is hereby amended by adding the
following:
Subsequent to the delivery of the July 16 Letter (as defined in
Amendment No. 1) to the Special Committee, representatives of BIG from time
to time held discussions with representatives of the Special Committee
regarding the July 16 Letter and the potential terms on which BIG might
support a Self-Tender (as defined in Amendment No. 1), which included
discussions as to the offer price, the amount of and rate of interest on the
Loan (as defined in Amendment No. 1) and the conditions to closing the
Self-Tender. In the course of these discussions, representatives of BIG
inquired whether the Special Committee would recommend a proposal, if made
by BIG, supporting a Self-Tender at a price of $3.08 per share, subject to a
loan to BIG in the amount of $9 million, bearing interest at a rate of
10.75%.
Subsequently, by letter to the Special Committee dated August 5,
2002, (the "August 5 Letter"), based on its belief that the Special
Committee was prepared to accept such a proposal, BIG indicated its
willingness to support a Self-Tender at a price of $3.08 per share, subject
to (a) the Issuer providing a loan (the "Loan") to BIG in the amount of $7
million on the terms outlined in an annex to the August 5 Letter, (b) the
Issuer entering into a merger agreement (the "Merger Agreement") with BIG
providing for the Self-Tender and a second-step merger (the "Merger") of the
Issuer with an indirect subsidiary of BIG on terms customary for
transactions of that type, (c) appropriate board approvals of the
Self-Tender, the Loan, the Merger Agreement and the Merger, based upon the
advice of an independent financial advisor that such transactions are fair
from a financial point of view to the shareholders of the Issuer (other than
the Reporting Persons), (d) acceptance of the Self-Tender by a majority of
the outstanding shares of the Issuer not held by the Reporting Persons, (e)
the receipt of appropriate regulatory approvals, if required, and (f) the
other terms and conditions outlined in the August 5 Letter. The full text of
the August 5 Letter is attached hereto as Exhibit 4.3 and hereby
incorporated by reference herein.
Subsequent to the delivery of the August 5 Letter, the Special
Committee indicated to BIG that in lieu of accepting BIG's proposal, the
Special Committee desired to negotiate mutually acceptable definitive
agreements with BIG on substantially the terms of the August 5 Letter. The
Reporting Persons intend to pursue such negotiations.
The Reporting Persons intend to review their holdings in the Issuer
on a continuing basis. As part of this ongoing review, the Reporting Persons
have engaged, and may in the future engage, legal and financial advisors to
assist them in such review and in evaluating strategic alternatives that are
or may become available with respect to their holdings in the Issuer.
In that connection, and depending upon, among other things, current
and anticipated future trading prices for the Common Stock, the financial
condition, results of operations and prospects of the Issuer and its
businesses, general economic, market and industry conditions, and the
Reporting Persons' overall investment portfolio, strategic objectives and
financial condition, the Reporting Persons may from time to time consider a
number of possible strategies for enhancing the value of their investment in
the Issuer, or other extraordinary matters relating to the Issuer,
including, among other things, continued ownership of the shares of Common
Stock currently beneficially owned by the Reporting Persons; acquiring
additional securities of the Issuer in the open market, in privately
negotiated transactions or otherwise; structuring a loan or loans secured by
some or all of the shares of Common Stock beneficially owned by the
Reporting Persons; disposing of some or all of the securities of the Issuer
beneficially owned by them; proposing or seeking to take control of the
Issuer or otherwise to effect an extraordinary corporate transaction such as
an acquisition, merger, recapitalization, reorganization or liquidation
involving the Issuer or any of its subsidiaries or a sale or transfer of a
material amount of assets of the Issuer or any of its subsidiaries; or
proposing or effecting any other transaction or matter that would constitute
or result in any of the transactions, matters or effects enumerated in Item
4 of this Schedule 13D.
The review and the considerations noted above may lead to the
taking of any of the actions set forth above or may lead the Reporting
Persons to consider other alternatives. However, there can be no assurance
that the Reporting Persons will develop any plans or proposals with respect
to any of the foregoing matters or take any particular action or actions
with respect to some or all of their holdings in the Issuer, or as to the
timing of any such matters should they be so pursued by the Reporting
Persons. The Reporting Persons reserve the right, at any time and in each
Reporting Person's sole discretion, to take any of the actions set forth
above.
Item 7. Material to be Filed as Exhibits.
4.1 Letter from BIG to the Special Committee dated March 21,
2002 (1)
4.2 Letter from BIG to the Special Committee dated July 16,
2002 (3)
4.3 Letter from BIG to the Special Committee dated August 5,
2002
99.1 Agreement of Joint Filing dated as of May 24, 2002 among
Bankers Insurance Group, Inc., Bankers Insurance Company,
Bankers Security Insurance Company, Bankers Financial
Corporation, Bankers International Financial Corporation,
Bankers International Financial Corporation, Ltd.,
Ansbacher (Cayman) Limited, as trustee of the Bankers
International Financial Corporation II Trust and
Independent Foundation for the Pursuit of Charitable
Endeavors, Ltd.(1)
99.2 Power of Attorney for Bankers International Financial
Corporation, Ltd.(1)
99.3 Power of Attorney for Ansbacher (Cayman) Limited, as
trustee for the Bankers International Financial
Corporation II Trust(1)
99.4 Power of Attorney for Independent Foundation for the
Pursuit of Charitable Endeavors, Ltd.(2)
(1) Incorporated by reference to the Reporting Persons Schedule 13D filed
with the SEC on May 24, 2002.
(2) Incorporated by reference to the Reporting Persons Schedule 13G filed
with the SEC on April 5, 2000.
(3) Incorporated by reference to the Reporting Persons Schedule 13D-A,
Amendment No.1, filed with the SEC on July 19, 2002.
The Index of Exhibits attached to this Statement is hereby
incorporated by reference in its entirety.
SIGNATURES
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this Statement is true,
complete, and correct.
Dated: August 8, 2002
BANKERS INSURANCE GROUP, INC.
By: /s/ Robert G. Southey
-----------------------------
Name: Robert G. Southey
Title: Secretary
General Counsel
Vice President
BANKERS INSURANCE COMPANY
By: /s/ Robert G. Southey
-----------------------------
Name: Robert G. Southey
Title: Secretary
General Counsel
Vice President
BANKERS SECURITY INSURANCE COMPANY
By: /s/ Robert G. Southey
-----------------------------
Name: Robert G. Southey
Title: Secretary
General Counsel
Vice President
BANKERS FINANCIAL CORPORATION
By: /s/ David B. Snyder
-----------------------------
Name: David B. Snyder
Title: Secretary
General Counsel
Vice President
BANKERS INTERNATIONAL FINANCIAL
CORPORATION
By: /s/ David B. Snyder
------------------------------
Name: David B. Snyder
Title: Secretary
General Counsel
Vice President
BANKERS INTERNATIONAL FINANCIAL
CORPORATION, LTD.
By: /s/ David K. Meehan
--------------------------------
Name: David K. Meehan
Title: Attorney-in-fact under
Power dated 5/16/02
ANSBACHER (CAYMAN) LIMITED, AS
TRUSTEE FOR THE BANKERS INTER-
NATIONAL FINANCIAL CORPORATION
II TRUST
By: /s/ David K. Meehan
-------------------------------
Name: David K. Meehan
Title: Attorney-in-fact under
Power dated 5/16/02
INDEPENDENT FOUNDATION FOR THE
PURSUIT OF CHARITABLE ENDEAVORS,
LTD.
By: /s/ David K. Meehan
-------------------------------
Name: David K. Meehan
Title: Attorney-in-fact under
Power dated 2/10/99
INDEX OF EXHIBITS
Number Description
4.1 Letter from BIG to the Special Committee dated March 21,
2002 (1)
4.2 Letter from BIG to the Special Committee dated July 16,
2002 (3)
4.3 Letter from BIG to the Special Committee dated August 5,
2002
99.1 Agreement of Joint Filing dated as of May 24, 2002 among
Bankers Insurance Group, Inc., Bankers Insurance Company,
Bankers Security Insurance Company, Bankers Financial
Corporation, Bankers International Financial Corporation,
Bankers International Financial Corporation, Ltd.,
Ansbacher (Cayman) Limited, as trustee of the Bankers
International Financial Corporation II Trust and
Independent Foundation for the Pursuit of Charitable
Endeavors, Ltd.(1)
99.2 Power of Attorney for Bankers International Financial
Corporation, Ltd.(1)
99.3 Power of Attorney for Ansbacher (Cayman) Limited, as
trustee for the Bankers International Financial
Corporation II Trust(1)
99.4 Power of Attorney for Independent Foundation for the
Pursuit of Charitable Endeavors, Ltd.(2)
(1) Incorporated by reference to the Reporting Persons Schedule 13D filed
with the SEC on May 24, 2002.
(2) Incorporated by reference to the Reporting Persons Schedule 13G filed
with the SEC on April 5, 2000.
(3) Incorporated by reference to the Reporting Persons Schedule 13D-A,
Amendment No.1, filed with the SEC on July 19, 2002.
Exhibit 4.3
BANKERS INSURANCE GROUP LETTERHEAD
Edwin C. Hussemann
Treasurer
August 5, 2002
John S. McMullen
Chairman of Special Committee of the Board of Directors of
Insurance Management Solutions Group, Inc.
501 East Kennedy Boulevard, Suite 1700
Tampa, FL 33602
Dear Jack:
This letter amends any and all prior communications from or on
behalf of BIG (defined below) to you, any other member of the Special
Committee or any advisor to the Special Committee regarding the subject
matter hereof.
We are writing to communicate to you that we would be prepared to
support a self-tender offer by Insurance Management Solutions Group, Inc.
(the "Self Tender") and the other transactions described herein, upon the
terms and conditions outlined in this letter. We commit to support the Self
Tender if made at a price per share of three and 08/100 dollars ($3.08) per
share in cash and in accordance with the other terms and conditions outlined
in this letter. We are also prepared to commit not to tender the shares of
IMSG held by us and our affiliates into the Self Tender and to pursuing this
potential transaction in as expedited a manner as possible, consistent with
our mutual responsibilities to our respective constituencies. Our commitment
is conditioned upon the following limited conditions: (i) the agreement of
IMSG to enter into a financing arrangement (the "Lending Transaction") with
Bankers Insurance Group, Inc. ("BIG") or assigns upon the terms and
conditions outlined in Annex A, (ii) execution of a mutually acceptable
definitive agreement between IMSG and BIG providing for the making of the
Self Tender and a second step merger of IMSG with a newly formed indirect
subsidiary of BIG (the "Merger") whereby the shares of IMSG held by
shareholders of IMSG other than BIG and its affiliates that do not tender
into the Self Tender would be converted into the right to receive three and
08/100 dollars ($3.08) per share in cash, with such agreement to be on terms
and conditions customary in these types of transactions, (iii) the approval
of the Self Tender and the Merger, and of the Lending Transaction in the
context of the entire transaction, by the Special Committee and the Board of
Directors of IMSG, based upon the advice of an independent financial advisor
that such transactions are each fair from a financial point of view to the
stockholders of IMSG other than BIG and our affiliates, (iv) acceptance of
the Self Tender by not less than a majority of the minority of the shares
outstanding of IMSG, and (v) the receipt of appropriate regulatory
approvals, if required. With respect to (v) above, as of August 5, 2002, BIG
is unaware of any required insurance regulatory approvals for this
transaction.
I look forward to your response to this proposal and am eager to
move forward with respect to this transaction.
Sincerely,
Edwin C. Hussemann
RGS:ts
Enclosure
ANNEX A
Terms of the Lending Transaction
$7M Loan / Letter of Credit / Guarantee or combination thereof:
Debtor: Bankers Insurance Group, Inc.
Lender: Insurance Management Solutions Group, Inc.
Principal Amount: $7 Million
Interest Rate: 10.75% per annum
Term: One year, monthly interest payments only, demand
upon 90 day notice in the event a definitive
merger agreement is terminated other than due to
IMSG's breach
Funding Date: As soon as practicable
Collateral: All rights, title and interest in the book of
flood insurance agency contracts held by BIG
subsidiary Bankers Underwriters, Inc.