Eastern Insurance Holdings, Inc. of Lancaster, Pennsylvania, has completed its common stock offering, the conversion of Educators Mutual Life Insurance Company, also of Lancaster, to a stock insurance company and the simultaneous acquisition of Educators Mutual and Eastern Holding Company, Ltd. and its subsidiaries by EIHI.
The company expects to begin trading today under the symbol EIHI on the NASDAQ National Market.
As a result of the conversion and the acquisition, Educators Mutual, now known as Eastern Life and Health Insurance Company, and EHC have become wholly owned subsidiaries of EIHI.
EIHI, through its subsidiaries, will operate a domestic casualty insurance group specializing in workers’ compensation, a domestic accident and life insurance company, an offshore specialty reinsurance company and a third-party claims administration company.
In the stock offering, EIHI sold 7,475,000 shares of its common stock at a price of $10.00 per share, raising gross proceeds of $74.75 million. In connection with the acquisition of EHC, EIHI issued an additional 3,875,472 shares of common stock and paid $40.2 million in cash from the conversion offering proceeds to EHC shareholders.
According to EIHI Chairman Robert McAlaine, “After integrating ELH and EHC’s operations and distribution models, the capital provided by our conversion will be used to expand our workers’ compensation and related businesses, including expanding territories, designing new products and evaluating acquisitions.”
Founded in 1910 as Educators Mutual Life Insurance Company, ELH provides group life, dental and disability insurance to customers in 16 states. ELH is licensed in 41 jurisdictions and markets and distributes its products through independent general agencies to approximately 1,900 independent producers.
Founded in 1997, EHC was a privately held holding company with approximately 185 shareholders, including significant ownership interests held by funds affiliated with two specialist financial services investors, Northaven Management, Inc. and High Ridge Capital, LLC. EHC, through its operating subsidiaries, specializes in providing workers’ compensation products and services to businesses and self-insured clients in Pennsylvania, Delaware and Maryland. EHC’s workers’ compensation products are distributed through approximately 55 independent agents.
The company’s new Web address is http://www.easterninsuranceholdings.com/.
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