NI Holdings, the holding company of Nodak Insurance Company, has concluded the acquisition of Westminster American Insurance Company for $40m in cash from private shareholders.
The acquisition of Westminster American Insurance is expected to enable NI Holdings to diversify its portfolio of products across geographies and lines by launching additional commercial multi-peril business into its business mix.
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Headquartered in Owings Mills, Maryland 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.
Even after the completion of the deal, Westminster president John Scott, Jr. will continue to manage the company’s insurance operations along with the current staff and management team.
NI Holdings has agreed to pay Scott a retention bonus of $5m, payable over a five-year period from the date of closing.
NI Holdings president and CEO Michael 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.”
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By GlobalDataSherman & Company acted as NI Holdings’ financial advisor in the transaction, while Dorsey & Whitney served as its legal advisor.
The acquisition follows NI Holdings’s takeover of Direct Auto Insurance Company in May 2018. Headquartered in Chicago, Illinois, Direct Auto underwrites specialty 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.
