Underwriting firm The National Security Group (NSG) is to merge with VR Insurance Holdings in a deal announced today.
Under the deal, the latter has agreed to acquire all of the outstanding common shares of The NSG for $16.35 per share in cash, representing a 77% premium to the closing share price as of January, 25, 2022. The total transaction value of the merger is approximately $41.4 million.
VR Insurance Holdings is a newly formed Delaware company founded by Vivek Ranadivé and a group of family office and strategic investors. It has been formed to serve as the holding company for NSG and potentially other insurance and financial services businesses.
In a statement, William L. Brunson, Jr., CEO of NSG, said: “By combining our 75-year history of stability, underwriting expertise and commitment to our policyholders with the financial resources of the investor group led by Mr. Ranadivé, we expect to realize greater opportunities for growth and an enhanced ability to serve our policyholders and agent partners.”
The company said that following closing, it is anticipated that VR Insurance Holdings will continue to leverage the existing operations and infrastructure of NSG’s wholly owned property and casualty and life insurance subsidiaries. The Company’s current CFO, Brian McLeod, will serve as COO of the Company’s insurance subsidiaries and will also serve as VR Holdings’ CFO.
The NSG was founded in 1947 and is currently based in Elba, Alabama.
