White Mountains Solutions Holding Co. , a wholly owned subsidiary of White Mountains Insurance Group, Ltd. and the group’s specialist runoff acquisition operation, has agreed to acquire Physicians Insurance of Ohio and Citation Insurance Co. from PICO Holdings, Inc. Both companies ceased underwriting in the mid-1990s and have been in runoff since that time. Under the terms of the agreement, White Mountains Solutions said it will pay approximately $17 million subject to certain targeted pre-closing dividends.
The transaction and related dividends are subject to Department of Insurance approvals in both California and Ohio. The transaction is expected to close during the third quarter of 2012.
“This acquisition continues our long track record of success in completing runoff acquisitions that allow sellers to achieve a clean exit from the insurance business,” said Neal Wasserman, president of White Mountains Solutions. This is the eighth runoff acquisition by the White Mountains Solutions team.
White Mountains Insurance Group, Ltd. is a Bermuda-domiciled financial services holding company.
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