White Mountains acquiring majority stake in specialty MGU
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White Mountains Insurance Group Ltd. on Monday said it will acquire a majority stake in NSM Insurance Group in a transaction valuing NSM at roughly $388 million.
Terms of the transaction, which is expected to close by the end of the second quarter of 2018 pending regulatory approvals and other customary closing conditions, were not disclosed.
Hamilton, Bermuda-based White Mountains intends to fund the acquisition through a combination of cash on hand and new debt issued by NSM, the insurer and reinsurer said in a statement.
Conshohocken, Pennsylvania-based NSM is a specialty insurance managing general underwriter and program administrator focused on niches including collector cars, nonprofit organizations, sports and wellness centers, specialty real estate and pet insurance, according to the statement.
NSM places more than $500 million in premiums annually through more than 6,000 brokers and approximately 100 insurers, the statement said.
“This transaction marks a new and exciting chapter of growth for NSM,” Geof McKernan, CEO of NSM, said in the statement.
“We are pleased to make this investment in NSM alongside the management team,” Manning Rountree, CEO of White Mountains, said in the statement. “We look forward to working with Geof and his team and to providing them with support and resources to continue to grow the business organically and through acquisitions.”
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