HAMILTON, Bermuda and NEW YORK, Could 9, 2022 /PRNewswire/ — White Mountains Insurance coverage Group, Ltd. (NYSE: WTM) (“White Mountains”) introduced at this time that it has signed a definitive settlement to promote NSM Insurance coverage Group (“NSM”) to funding funds affiliated with international funding agency Carlyle (NASDAQ: CG). The transaction values NSM at $1.775 billion.
White Mountains expects the transaction will end in a acquire of roughly $280 to its adjusted ebook worth per share and can improve undeployed capital from roughly $0.4 billion to roughly $1.7 billion.
“The NSM staff has achieved an incredible job constructing a market-leading specialty insurance coverage distribution platform. It has been our pleasure to associate with them alongside the best way,” stated Manning Rountree, Chief Govt Officer of White Mountains. “This transaction is a win for each White Mountains shareholders and NSM administration and staff. We need to thank Geof, Invoice, Marc, Jonathan and your entire NSM staff for all of their exhausting work. NSM is effectively positioned going ahead, and we want them continued success.”
“We thank Manning, Morgan, Chris and the remainder of the White Mountains staff for his or her priceless contributions and help all through our partnership,” stated Geof McKernan, Chief Govt Officer of NSM. “Collectively, we achieved robust natural development, accomplished six strategic acquisitions, added top quality expertise and constructed a specialised, diversified and scaled insurance coverage distribution platform. We couldn’t be happier with this final result and are excited to associate with Carlyle as we embark on NSM’s subsequent stage of development.”
“Leveraging Carlyle’s deep expertise supporting corporations within the insurance coverage companies sector, we’re thrilled to associate with NSM’s distinctive founder-led administration staff to assist the enterprise execute quite a few upside development drivers, together with continued operational enchancment, accretive M&A alternatives, and strategic investments in expertise and knowledge & analytics,” stated John Redett, Head of International Monetary Providers at Carlyle.
The transaction is anticipated to shut in the course of the second half of 2022. The closing is topic to regulatory approvals and different customary closing situations. The closing just isn’t topic to a financing situation.
White Mountains will file a present report on Type 8-Okay with the U.S. Securities and Alternate Fee containing a abstract of phrases and situations of the proposed transaction.
J.P. Morgan Securities LLC acted as unique monetary advisor, and Cravath, Swaine & Moore LLP served as authorized counsel, to White Mountains and NSM. Holland & Knight LLP additionally acted as authorized advisor to NSM administration. Morgan Stanley & Co. LLC acted as monetary advisor, and Wachtell, Lipton, Rosen & Katz acted as authorized advisor to Carlyle.
About NSM Insurance coverage Group
NSM is a full-service MGA and program administrator for specialty property & casualty insurance coverage. The corporate locations insurance coverage in area of interest sectors equivalent to specialty transportation, social companies, actual property and pet. On behalf of its insurance coverage provider companions, NSM usually manages all features of the position course of, together with product improvement, advertising and marketing, underwriting, coverage issuance and claims. For extra data, go to www.nsminc.com.
About White Mountains
White Mountains is a Bermuda-domiciled monetary companies holding firm traded on the New York Inventory Alternate and the Bermuda Inventory Alternate beneath the image WTM. Further monetary data and different gadgets of curiosity can be found on the Firm’s website online situated at www.whitemountains.com.
Carlyle (NASDAQ: CG) is a worldwide funding agency with deep business experience that deploys personal capital throughout three enterprise segments: International Personal Fairness, International Credit score and International Funding Options. With $325 billion of property beneath administration as of March 31, 2022, Carlyle’s objective is to speculate properly and create worth on behalf of its traders, portfolio corporations and the communities during which we dwell and make investments. Carlyle employs practically 1,900 folks in 26 workplaces throughout 5 continents. Additional data is out there at www.carlyle.com. Observe Carlyle on Twitter @OneCarlyle.
For White Mountains:
+1 (603) 640-2212
+1 (212) 813-4839
Secure Harbor Assertion beneath the Personal Securities Litigation Reform Act of 1995
This press launch could include “forward-looking statements” throughout the which means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Alternate Act of 1934. All statements, apart from statements of historic information, included or referenced on this launch which handle actions, occasions or developments which White Mountains expects or anticipates will or could happen sooner or later are forward-looking statements. The phrases “might”, “will”, “imagine”, “intend”, “anticipate”, “anticipate”, “venture”, “estimate”, “predict” and comparable expressions are additionally meant to establish forward-looking statements. These forward-looking statements embody, amongst others, statements with respect to White Mountains’s:
- change in ebook worth or adjusted ebook worth per share or return on fairness;
- enterprise technique;
- monetary and working targets or plans;
- incurred loss and loss adjustment bills and the adequacy of its loss and loss adjustment expense reserves and associated reinsurance;
- projections of revenues, revenue (or loss), earnings (or loss) per share, EBITDA, adjusted EBITDA, dividends, market share or different monetary forecasts of White Mountains or its companies;
- growth and development of its enterprise and operations; and
- future capital expenditures.
These statements are primarily based on sure assumptions and analyses made by White Mountains in gentle of its expertise and notion of historic tendencies, present situations and anticipated future developments, in addition to different elements believed to be applicable within the circumstances. Nonetheless, whether or not precise outcomes and developments will conform to its expectations and predictions is topic to dangers and uncertainties that would trigger precise outcomes to vary materially from expectations, together with:
- the dangers which are described on occasion in White Mountains’s filings with the Securities and Alternate Fee, together with however not restricted to White Mountains’s Annual Report on Type 10-Okay for the fiscal 12 months ended December 31, 2021;
- claims arising from catastrophic occasions, equivalent to hurricanes, earthquakes, floods, fires, terrorist assaults or extreme winter climate;
- recorded loss reserves subsequently proving to have been insufficient;
- the market worth of White Mountains’s funding in MediaAlpha;
- the tendencies and uncertainties from the COVID-19 pandemic, together with judicial interpretations on the extent of insurance coverage protection supplied by insurers for COVID-19 pandemic associated claims;
- enterprise alternatives (or lack thereof) which may be introduced to it and pursued;
- actions taken by rankings companies, equivalent to monetary power or credit score rankings downgrades or inserting rankings on adverse watch;
- the continued availability of capital and financing;
- deterioration of basic financial, market or enterprise situations, together with attributable to outbreaks of contagious illness (together with the COVID-19 pandemic) and corresponding mitigation efforts;
- aggressive forces, together with the conduct of different insurers;
- modifications in home or international legal guidelines or laws, or their interpretation, relevant to White Mountains, its opponents or its prospects; and
- different elements, most of that are past White Mountains’s management.
Consequently, the entire forward-looking statements made on this press launch are certified by these cautionary statements, and there may be no assurance that the precise outcomes or developments anticipated by White Mountains will likely be realized or, even when considerably realized, that they are going to have the anticipated penalties to, or results on, White Mountains or its enterprise or operations. White Mountains assumes no obligation to publicly replace any such forward-looking statements, whether or not on account of new data, future occasions or in any other case.
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SOURCE White Mountains Insurance coverage Group, Ltd.