Insurance holding company NI Holdings, Inc. has completed its previously announced acquisition of Westminster American Insurance Company from private shareholders for $40 million.
NI Holdings believes the acquisition will further diversify its portfolio of products both geographically and line, as additional commercial multi-peril business is introduced into the business mix.
Westminster is headquartered in Owings Mills, Maryland and underwrites multi-peril commercial insurance in the states of Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, and West Virginia, and the District of Columbia through independent agents.
Following the acquisition, Westminster President John Scott, Jr. will continue to manage the company’s insurance operations, along with the current staff and management team.
In connection with his continued employment, NI Holdings has agreed to pay Mr. Scott a retention bonus in the aggregate amount of $5 million, payable over the five-year period from the date of closing.
“We are extremely pleased to complete this transaction,” said Michael J. Alexander, President & CEO of NI Holdings.
“This is the second deployment of capital from our initial public offering back in 2017, and we look forward to the integration of Westminster into our group of companies in the coming months,” he continued. “We welcome John and his team to NI Holdings.”
Under the terms of the stock purchase agreement, Westminster shareholders will receive $40 million in cash.
Westminster’s statutory surplus as of December 31, 2018 was $20 million per its audited statutory-basis financial statements for the year ended December 31, 2018.
Venable LLP served as Westminster American Insurance Company’s legal advisor during this transaction, while Sherman & Company served as NI Holdings’ financial advisor and Dorsey & Whitney LLP was NI Holdings’ legal advisor.
