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principal manufacturing operations included the manufacture of
water heaters, steel drums and other containers, heating and air-
conditioning equipment and freezers, the printing of magazines,
and the modification and repair of aircraft. Housing and related
activities included the manufacture of mobile homes, conventional
home building, the operation of a chain of budget motels, and a
59-percent interest in a Florida community builder.
During the years at issue, City’s most significant
subsidiary was the Home Group, Inc. (HGI),2 which was wholly
owned by City. HGI was the parent company of the Home Insurance
Co., which in 1975 was the 13th largest property and casualty
insurer in the United States on the basis of net premiums
written, the 15th largest in 1977 and 1978, and again the 13th
largest in 1979. In 1976, HGI and its subsidiaries had assets of
approximately $2.5 billion and net equity of approximately $660
million. In 1985, HGI together with its subsidiaries had assets
in excess of $5 billion and net equity in excess of $744 million.
As the holding company for a multinational conglomerate,
City managed the group’s financial resources and needs. During
the 1970's, City sought financing for its rapidly growing
subsidiaries by borrowing from various sources depending on where
2 Before 1978, the name of the Home Group, Inc., was
CityHome Corp. “HGI” refers to the entity CityHome Corp. before
1978 and to the succeeding entity the Home Group, Inc., from 1978
onward.
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