White Mountains Solutions Holding Company (White Mountains Solutions) has signed an agreement with PICO Holdings (PICO) to acquire its units.

Under the terms of the agreement, White Mountains Solutions will pay approximately $17m subject to certain targeted pre-closing dividends and will acquire PICO Holdings’ Ohio-based Physicians Insurance and Citation Insurance Company.

The purchase transaction and related dividends are subject to Department of Insurance approvals in both California and Ohio, US.

White Mountains Solutions president Neal Wasserman said: "This acquisition continues our long track record of success in completing runoff acquisitions that allow sellers to achieve a clean exit from the insurance business."

The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close during the third quarter of 2012.