Borg-Warner Settles Mission Lawsuits

Borg-Warner Security Corp. has settled its lawsuits involving failed California insurer Mission Insurance Cos. The security company, which operates under the Burns and Wells Fargo brand names, agreed that its reinsurance subsidiary, Centaur Insurance Co., would approve a $48-million claim filed by Mission. Chicago-based Borg-Warner also agreed to pay Mission $4 million and give it one-third of Borg-Warner’s interest in Centaur. Mission Insurance ran aground in the mid-1980s after expanding beyond its successful niche as a workers’ compensation insurer. The state took over as conservator of the Los Angeles-based company in 1985 and started liquidation proceedings in 1987, the same year Centaur itself failed and entered rehabilitation with the Illinois Department of Insurance.