A wholly owned subsidiary of
White Mountains Insurance Group Ltd.
) - White Mountains Solutions Holding Company Inc. in association
with the group's specialist runoff acquisition business acquired
American Fuji Fire and Marine Insurance Company. The deal
announced in Dec 2012, has been pending regulatory approval from
the Illinois Department of Insurance.
The Fuji Fire and Marine Insurance Company is a small runoff
subsidiary of the
American International Group
White Mountains Solutions provides acquisition and management of
runoff liabilities for insurance and reinsurance companies both
in the United States and internationally. The deal is expected to
fortify White Mountains' existing portfolio thereby enhancing the
Since its inception in 2004, White Mountains Solutions has
implemented eleven transactions thereby generating an after-tax
income of approximately $163 million as of Dec 31, 2012. Adding
to these efforts, White Mountains Solutions entered into a deal
to acquire the runoff insurance subsidiary of
Leucadia National Corporation
) - Empire Insurance Company in Feb 2013. The deal is expected to
culminate during the second quarter of 2013 pending customary
closing conditions and regulatory approval from the New York
Department of Financial Services.
White Mountains has been following an inorganic route of
expansion, mainly through acquisitions and is left with a cash
balance of $212.6 million at year end 2012. We expect the cash
balance of the company to be strong enough to support its
Earlier this month another property and casualty insurer,
) acquired Fianzas Monterrey from New York Life Insurance Company
for a cash consideration of $293 million. The deal was undertaken
to expand the surety business of ACE.
White Mountains currently carries Zacks Rank #3 (Hold).
ACE LIMITED (ACE): Free Stock Analysis Report
AMER INTL GRP (AIG): Free Stock Analysis
LEUCADIA NATL (LUK): Free Stock Analysis
WHITE MTN INS (WTM): Free Stock Analysis
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