Pennsylvania-based PMA Capital Corp. has been acquired by Old Republic International Corp. in a stock-swap transaction valued at around $365 million.
The transaction is expected to close in the third quarter, pending approval by PMA’s shareholders, and regulators.
PMA Capital Corp. is the holding company for several subsidiaries that specialize in workers’ compensation and other lines of property/casualty insurance as well as third-party administrator and other fee-based services.
Chicago-based Old is an insurance holding company with subsidiaries that market, underwrite and provide risk management services for a wide variety of coverage, principally in the property and liability, mortgage guaranty and title insurance fields.
“We expect that this transaction will enable our shareholders to realize greater long-term value than if we continued to operate as a stand-alone entity,” PMA President and CEO Vincent Donnelly said. “We also believe that the additional financial strength and stability of a larger, well diversified company will benefit our clients, employees and other stakeholders.”
Following the closing, the company will continue to do business as the PMA Cos. and will maintain its corporate headquarters in Blue Bell, Pennsylvania.
Old Republic Chairman and CEO Al Zucaro said that “we are extremely pleased to welcome PMA’s management and all of its associates to our family of companies. This merger is consistent with our long-term strategic plan to grow our General Insurance business. The alliance of our two companies results in a well-capitalized insurance group appropriately positioned to take advantage of the many opportunities and synergies which will no doubt be available to us.”
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