White Mountains Re Ltd., a wholly owned unit of White Mountains Insurance Group Ltd. (WTM) said that through a subsidiary it had entered into a definitive agreement to acquire Central National Insurance Company of Omaha from Drum Financial Corp.
Under the terms of the deal, White Mountains Re will pay approximately $5 million. Central National's statutory surplus as of September 30, 2009 was $13.3 million. Among other conditions, the transaction is subject to the termination of the rehabilitation proceedings by the court and the approval of the Nebraska Department of Insurance.
Moreover, White Mountains Re anticipates the transaction to close during the first quarter of 2010.
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