The acquisition of Westminster American Insurance will bring multi-peril insurance to NI Holdings’ portfolio
NI Holdings completes acquiring Maryland-headquartered insurance underwriter. (Courtesy: Pixabay/Gerd Altmann)
NI Holdings, the holding company of Nodak Insurance Company, has completed the acquisition of Westminster American Insurance Company from private shareholders for $40m in cash.
By acquiring Westminster American Insurance, NI Holdings will diversify its portfolio of products across geographies and lines, by introducing additional commercial multi-peril business into its business mix.
Owings Mills, Maryland-headquartered Westminster American Insurance 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.
With the deal now closed, Westminster president John Scott, Jr., will continue to manage the company’s insurance operations along with the current staff and management team.
The deal to acquire Westminster was announced last October
NI Holdings has agreed to pay Scott a retention bonus of $5m, payable over a five-year period from the date of closing. The deal was closed on 1 January this year, pursuant to the deal reached last October.
NI Holdings president and CEO Michael J. Alexander said: “We are extremely pleased to complete this transaction. 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. We welcome John and his team to NI Holdings.”
Sherman & Company acted as the financial advisor in the transaction, while Dorsey & Whitney served as its legal advisor.
In May 2018, the company had agreed to acquire Direct Auto Insurance Company. Headquartered in Chicago, Illinois, Direct Auto underwrites speciality automobile insurance in the state of Illinois through independent agents.
NI Holdings, the North Dakota business corporation is the parent company of Nodak Insurance Company.
Apart from owning American West Insurance Company and Primero Insurance Company, Nodak Insurance Company also manages BattleCreek Mutual Insurance Company.