NU Online News Service, Jan. 25, 3:41 p.m.EST
|White Mountains Re Ltd. said it has agreed to acquire thebankrupt Central National Insurance Company of Omaha from DrumFinancial Corp. for $5 million.
|In runoff since 1989, Central National has been operated underan order of rehabilitation in the State of Nebraska since 1990. Thepurchase transaction, among other conditions, is subject to thetermination of the rehabilitation proceedings by the court and theapproval of the Nebraska Department of Insurance.
|Central National's statutory surplus as of Sept. 30, 2009 was$13.3 million. The firm offered life and property and casualtyproducts.
|The deal is expected to be completed during the first quarter ofthis year, subject to regulatory approval.
|Allan Waters, president and chief executive officer of WhiteMountains Re, said in a statement that while the deal is "modest insize," it continues a strategy of "building shareholder valuethrough acquisitions of runoff insurance and reinsurancecompanies."
|The deal represents the sixth runoff acquisition by thecompany's solutions team.
|White Mountains Re is a subsidiary of Bermuda-based WhiteMountains Insurance Group, Ltd.
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