Stockholders Okay Meadowbrook ProCentury M&A

Southfield, Mich.-based Meadowbrook Insurance Group holding company and ProCentury Corp. said yesterday that stockholders of both insurers have approved ProCentury's $273 million acquisition by Meadowbrook.

Last Thursday Meadowbrook announced it had finally received commitments for its proposed $100 million financing arrangements for the deal. In June the company said it was still $15 million below that target figure.

Both firms are specialty property and casualty operations. ProCentury is based in Columbus, Ohio.

Robert Cubbin, president and chief executive officer of Meadowbrook, and Edward Feighan, chairman and CEO of ProCentury Corporation, jointly made the announcement.

Meadowbrook and ProCentury announced their plans to merge in February. The transaction is expected to close in the third quarter.

Mr. Cubbin said, "The Meadowbrook and ProCentury management teams have been working together diligently to insure a smooth transition to form one cohesive organization. Many initiatives are underway to develop the numerous growth opportunities created by this merger of two strong, experienced and disciplined operations."

Mr. Feighan added that the firms believe the merger creates "exciting opportunities for both companies' employees, agents and shareholders that did not exist before the merger."

Meadowbrook Insurance Group is a risk management organization for the alternative risk market, specializing in alternative risk management solutions for agents, professional and trade associations, and small to medium-sized insureds.

ProCentury is a specialty property and casualty insurance holding company. Its subsidiary, Century Surety Company, underwrites property and casualty insurance for small and midsize businesses.

Century Surety Company primarily writes excess and surplus lines insurance and markets its products through a select network of general agents.