White Mountains Re to Buy Troubled Nebraska-Based Insurer

White Mountains Re Ltd., a wholly owned subsidiary of White Mountains Insurance Group Ltd. has agreed to acquire Central National Insurance Company of Omaha, Neb., from Drum Financial Corporation.

In runoff since 1989, Central National has been operated under an order of rehabilitation in the state of Nebraska since 1990. Among other conditions, the transaction is subject to the termination of the rehabilitation proceedings by the court and the approval of the Nebraska Department of Insurance.

Under the terms of the agreement, White Mountains Re will pay approximately $5 million. Central National’s statutory surplus as of Sept. 30, 2009, was $13.3 million.

Allan Waters, president and chief executive officer of White Mountains Re, said the “transaction continues our long history of building shareholder value through acquisitions of runoff insurance and reinsurance companies.”

White Mountains Re expects the transaction to close during the first quarter of 2010 subject to regulatory approvals and other customary closing conditions.

Source: White Mountains Re Ltd., www.whitemountains.com.

Topics Mergers & Acquisitions Carriers