Shares of White
Mountains Insurance Group Ltd
) inched up nearly 0.4% to close at $601 on Dec 24. The gain came
on the back of White Mountains' announcement of entering into an
agreement with Star & Shield Holdings LLC to acquire some of
its assets and liabilities.
A wholly-owned subsidiary of White Mountains will take over Star
& Shield Risk Management LLC. The financial details remain
undisclosed. Nonetheless, the transaction is expected to see
light in the first quarter of 2014.
Star & Shield Risk Management is the attorney-in-fact for the
Star & Shield Insurance Exchange, which in turn is a
reciprocal insurance exchange based in Florida. Star & Shield
Insurance Exchange provides private passenger auto insurance to
the public safety community's members and their families.
With the addition of Star & Shield Risk Management, White
Mountains will enhance its auto insurance business besides
increasing its client base.
White Mountains, earlier, has also adopted the inorganic route to
strengthen its portfolio. In Apr 2013, White Mountains'
wholly-owned subsidiary, White Mountains Solutions Holding
Company Inc. acquired American Fuji Fire and Marine insurance
Company - a runoff subsidiary of
American International Group
No momentum in the earnings estimate was observed in the last 30
days for White Mountains. With the news of the acquisition, we
expect the estimates to be revised upwards. The Zacks Consensus
Estimate for 2013 and 2014 is currently pegged at $27.90 and
White Mountains presently sports a Zacks Rank #1 (Strong Buy).
Other stocks in the property and casualty insurance space include
Allied World Assurance Company holdings, AG
). Both these stocks hold the same Zacks Rank as White Mountains.
AMER INTL GRP (AIG): Free Stock Analysis
ALLIED WORLD AS (AWH): Free Stock Analysis
WHITE MTN INS (WTM): Free Stock Analysis
ALLEGHANY CORP (Y): Free Stock Analysis
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