Last week, White Mountains Re Ltd. announced that it has signed a definitive agreement to purchase Central National Insurance Company of Omaha for $5 million. The seller was Drum Financial Corporation, which has been operating the insurance company since 1990 under an order by the Nebraska Department of Insurance
Allan Waters, the CEO of White Mountains Re, said, “We are very pleased by the terms of this transaction put together by the White Mountains Re Solutions team. Although modest in size, this transaction continues our long history of building shareholder value through acquisitions of runoff insurance and reinsurance companies.”
Central National Insurance Company of Omaha had a statutory surplus of $13.3 million as of 9/30/2009. The company is in runoff, which indicates that the company is no longer actively underwriting insurance, but only settling claims on existing policies. The transaction is expected to close in the first quarter of 2010 and requires court approval.
White Mountains Re Ltd. is a subsidiary of White Mountains Insurance (WTM). White Mountains Insurance is a Bermuda based property and casualty insurance company that offers insurance in several different areas including auto, marine insurance, workers compensation, general liability, and accident and health policies.