White Mountains sells NSM to Carlyle

White Mountains Insurance Group has announced that it has reached a definitive agreement for the sale NSM Insurance Group to investment funds affiliated with global investment firms Carlyle. NSM is a transaction value of $1.775 Billion.

White Mountains anticipates that the transaction will bring about a gain of approximately $280 to its adjusted book value per share and will increase undeployed capital from approximately 0.4 Billion to approximately $1.7 Billion.

“The NSM team has done a tremendous job building a market-leading specialty insurance distribution platform.  It has been our pleasure to partner with them along the way,” Manning Rountree is the Chief Executive Officer at White Mountains “This transaction is a win for both White Mountains shareholders and NSM management and employees. We thank Geof and Bill, Marc, Jonathan, and the entire NSM staff for their hard work.  NSM is well-positioned going forward, and we wish them continued success.”

“We thank Manning, Morgan, Chris and the rest of the White Mountains team for their valuable contributions and support throughout our partnership,”  Geof McKernanNSM Chief Executive Officer,.  “Together, we achieved strong organic growth, completed six strategic acquisitions, added high-quality talent and built a specialized, diversified and scaled insurance distribution platform. We could not be happier with this outcome and are excited to partner with Carlyle as we embark on NSM’s next stage of growth.”

“Leveraging Carlyle’s deep experience supporting companies in the insurance services sector, we are thrilled to partner with NSM’s exceptional founder-led management team to help the business execute numerous upside growth drivers, including continued operational improvement, accretive M&A opportunities, and strategic investments in technology and data & analytics,”  John RedettCarlyle, Head of Global Financial Services

The transaction is expected to close in the second quarter of 2022. Closing is subject to regulatory approvals, as well as other customary closing conditions. A financing condition is not required for closing.

White Mountains will file a Form 8-K current report with the U.S Securities and Exchange Commission. It contains a summary and terms and conditions for the proposed transaction.

J.P. Morgan Securities LLC acted as an exclusive financial advisor, and Cravath, Swaine & Moore LLP served as legal counsel, to White Mountains and NSM. Holland & Knight LLP also acted as a legal advisor to NSM management.  Morgan Stanley & Co. LLC acted as a financial advisor, and Wachtell, Lipton, Rosen & Katz acted as legal advisor to Carlyle.

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