Policyholders' Insurance Co. (API) after the granting of the required court and regulatory approvals.

API is a Massachusetts insurer, licensed in most states, and for merly owned by American Mutual Liability Insurance Co., which is under the receivership of the Massachusett s Division of Insurance.

The arrangements for the purchase of API include the transfer of all prior liabilities to a liquidating trust established in accordance with a court order.

Mutual Risk will change API's name to Villanova Insurance Co., providing an additional admitted insurer to accommodate Mutual Risk's growing programme business.

Mutual Risk Management Ltd. will pay out nine cents per common share, its third quarterly cash dividend of 1997 on August 22 to shareholders of record August 8.