HAMILTON, Bermuda, Dec. 22 /PRNewswire-FirstCall/ -- White Mountains Re
Group, Ltd., the Bermuda-based reinsurance unit of White Mountains Insurance
Group, Ltd. (NYSE: WTM), announced today that its wholly-owned subsidiary
Folksamerica Reinsurance Company has completed its acquisition of Mutual
Service Casualty Insurance Company, a Minnesota-domiciled, runoff insurer
formerly affiliated with Illinois-based Country Insurance & Financial Services
(Country). As part of a sponsored demutualization and conversion to a stock
company, Mutual Service Casualty has been renamed Stockbridge Insurance
Folksamerica paid approximately $33.6 million for Stockbridge and will
record an after tax GAAP gain on the transaction of approximately $21 million.
As part of the transaction, Country Mutual Insurance Company, a member of
Country's affiliated group of companies, will provide Stockbridge with
approximately $25 million of reinsurance protection in excess of Stockbridge's
carried reserves as of September 30, 2006. Folksamerica is not acquiring any
infrastructure or employees in the transaction.
"We are very pleased with the terms of this runoff acquisition put
together by our Simsbury, CT-based Folksamerica Re Solutions unit and with our
ability to assist Country in its desire to focus on its ongoing core
operations," said Tom Hutton, President and CEO of White Mountains Re. "We
are taking on a well reserved portfolio with substantial downside protection
and we expect this transaction to add solid value for White Mountains'
shareholders both initially and over time."
White Mountains Re Group Ltd. is a Bermuda holding company whose operating
companies, which includes Folksamerica Reinsurance Company, offer lead
reinsurance capacity for property, casualty, accident & health, marine, and
aviation exposures. White Mountains Insurance Group, Ltd. is a Bermuda-
domiciled financial services holding company traded on the New York Stock
Exchange and the Bermuda Stock Exchange under the symbol WTM. Additional
information and other items of interest regarding White Mountains Re and
Folksamerica are available at the companies' web sites located at,
respectively, www.wtmre.com and www.folksamerica.com. Additional financial
information and other items of interest regarding White Mountains are
available at White Mountains' web site located at www.whitemountains.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
The press release may contain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements of
historical facts, included or referenced in this release which address
activities, events or developments which we expect or anticipate will or may
occur in the future are forward-looking statements. The words "will,"
"believe," "intend," "expect," "anticipate," "project," "estimate," "predict"
and similar expressions are also intended to identify forward-looking
statements. These forward-looking statements include, among others,
statements with respect to White Mountains':
- growth in book value per share or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred losses and the adequacy of its loss and loss adjustment
expense reserves and related reinsurance;
- projections of revenues, income (or loss), earnings (or loss) per
share, dividends, market share or other financial forecasts;
- expansion and growth of our business and operations; and
- future capital expenditures.
These statements are based on certain assumptions and analyses made by
White Mountains in light of its experience and perception of historical
trends, current conditions and expected future developments, as well as other
factors believed to be appropriate in the circumstances. However, whether
actual results and developments will conform to our expectations and
predictions is subject to a number of risks and uncertainties that could cause
actual results to differ materially from expectations, including:
- the risks associated with Item 1A of White Mountains' 2005 Annual
Report on Form 10-K and second quarter 2006 Form 10Q;
- claims arising from catastrophic events, such as hurricanes,
earthquakes, floods or terrorist attacks;
- the continued availability of capital and financing;
- general economic, market or business conditions;
- business opportunities (or lack thereof) that may be presented to it
- competitive forces, including the conduct of other property and
casualty insurers and reinsurers;
- changes in domestic or foreign laws or regulations, or their
interpretation, applicable to White Mountains, its competitors or its
- an economic downturn or other economic conditions adversely affecting
its financial position;
- recorded loss reserves subsequently proving to have been inadequate;
- other factors, most of which are beyond White Mountains' control.
Consequently, all of the forward-looking statements made in this press
release are qualified by these cautionary statements, and there can be no
assurance that the actual results or developments anticipated by White
Mountains will be realized or, even if substantially realized, that they will
have the expected consequences to, or effects on, White Mountains or its
business or operations. White Mountains assumes no obligation to update
publicly any such forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE White Mountains Insurance Group, Ltd.
CONTACT: Christine Repasy of White Mountains Insurance Group, Ltd.,