Folksamerica Reinsurance Company has completed its acquisition of Mutual Service Casualty Insurance Company, a Minnesota-domiciled runoff insurer formerly affiliated with Illinois-based Country Insurance & Financial Services.
The announcement was made Friday by Folksamerica's parent company, Hamilton, Bermuda-based White Mountains Re Group, Ltd., the Bermuda-based reinsurance unit of White Mountains Insurance Group, Ltd.
Mutual Service was renamed Stockbridge Insurance Company.
Folksamerica paid approximately $33.6 million for Stockbridge and will record an after-tax gain on the transaction of approximately $21 million.
As part of the transaction, Country Mutual Insurance Company, a member of Country Insurance's affiliated group of companies, will provide Stockbridge with approximately $25 million of reinsurance protection in excess of Stockbridge's carried reserves as of Sept. 30.
Folksamerica is not acquiring any infrastructure or employees in the transaction.
“We are very pleased with the terms of this runoff acquisition put together by our Simsbury, Conn.-based Folksamerica Re Solutions unit and with our ability to assist Country Insurance in its desire to focus on its ongoing core operations,” said Tom Hutton, president and chief executive officer of White Mountains Re. “We are taking on a well-reserved portfolio with substantial downside protection, and we expect this transaction to add solid value for White Mountains' shareholders both initially and over time.”
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