White Mountains to Acquire Majority Stake in NSM
White Mountains Insurance Group announced its plans to acquire a majority equity stake in NSM Insurance Group, a specialty insurance program administrator. The transaction values NSM at approximately $388M. White Mountains intends to fund the acquisition through a combination of cash on hand and new debt issued by NSM.
NSM is a specialty insurance program administrator placing in excess of $500M in premiums annually through its relationships with more than 6,000 brokerage firms and approximately 100 insurance carriers. It covers a wide range of specialty insurance sectors such as collector cars, non-profit organizations, sports & wellness centers, specialty real estate and pet insurance. NSM’s deep industry knowledge and capabilities and longstanding relationships with insurance brokers and insurance carriers allow it to serve as a critical intermediary in the specialty insurance market.
“We are pleased to make this investment in NSM alongside the management team. The company is high quality, and we believe there is tremendous opportunity to grow and expand the business. We look forward to working with Geof and his team and to providing them with support and resources to continue to grow the business organically and through acquisitions” – White Mountains CEO, Manning Rountree.
“This transaction marks a new and exciting chapter of growth for NSM. We are thrilled to have the support of an experienced insurance investor with a long-term capital base as we set our course toward future success. We look forward to working with the White Mountains team to continue to execute on our growth strategy while delivering the best solutions and services to our insurance carrier partners” – NSM CEO, Geof McKernan.
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