Munich Re has concluded the acquisition of The Midland Company by acquiring a 100% stake in the company, including its wholly owned insurance subsidiary American Modern Insurance Group. With an acquisition price of $65 per share, the total consideration paid amounted to around $1.3 billion.
Midland is a US specialty insurer in segments such as insurance for motorcycles and recreational vehicles. In 2007, Midland earned a premium income of $967 million. Munich Re said that the purchase is part of a strategic realignment of its US business.
Peter Roder, member of Munich Re’s management board responsible for business in North America, said: The acquisition of Midland is a significant step towards profitable growth in the world’s most important insurance market, the US.