White Mountains Insurance Group, Ltd. and Star & Shield Group announced Monday that Star & Shield Holdings LLC had entered into a definitive agreement to sell certain assets and liabilities to a wholly-owned subsidiary of White Mountains.
Under the terms of the agreement, White Mountains will acquire Star & Shield Risk Management LLC, the attorney-in-fact for Star & Shield Insurance Exchange, a Florida-domiciled reciprocal insurance exchange providing private passenger auto insurance to members of the public safety community and their families, and other related entities within the Star & Shield Group.
In a statement, Allen Durham, President and CEO of Star & Shield Group, noted that White Mountains long-term commitment and funding ability would take his company’s business to the next level.
David Foy, Executive Vice President and CFO of White Mountains, said Durham’s team has created a unique organization to serve the public safety community.
The transaction is expected to close during the first quarter of 2014, subject to customary closing conditions and regulatory approval from the Office of Insurance Regulation in Florida.
Sterne, Agee & Leach, Inc. acted as financial advisor and Greenberg Traurig, P.A. acted as legal advisor to Star & Shield Group. Morgan, Lewis & Bockius LLP acted as legal advisor to White Mountains.
Source: White Mountains Insurance Group, Ltd.