Meadowbrook Insurance Group, Inc. (NYSE: MIG), a specialty property and casualty insurance holding company based in Southfield, Michigan, announced today that the merger of ProCentury Corporation, a Columbus, Ohio-based specialty property and casualty insurance holding company has been finalized and closed.
Meadowbrook’s President and Chief Executive Officer, Robert S. Cubbin, stated: “We are pleased to have closed on the merger with ProCentury. The diverse products and distribution systems of our two specialty lines insurance companies will create opportunities and synergies that did not exist prior to the merger.”
Meadowbrook has long been known for its program expertise, while ProCentury has earned a reputation for an expansive and ever-growing portfolio of products in the excess and surplus lines markets. The combined strategy of the two companies is to create an organization that remains a full-service specialty lines company with a program focus that now offers full-service excess and surplus lines capabilities.
There are very few redundancies between the two firms. Meadowbrook’s programs and ProCentury’s products and wholesale agent distribution systems do not overlap, and the expertise in each organization will remain intact. There will also be very little in the way of integration challenges as the firms’ cultures, technology and commitment to customer service closely mirror one another’s.
Added Christopher J. Timm, President of Century Surety Company, “We look forward to joining the Meadowbrook family and the future opportunities and expertise this partnership will offer our team, agents, clients and the risk management industry.”
Subject to the terms of the Merger Agreement, each outstanding common share of ProCentury was converted into the right to receive either $20.00 in cash, or 2.500 shares of Meadowbrook common stock. Meadowbrook paid approximately $99.2 million in cash and issued approximately 21.2 million shares of Meadowbrook common stock, for a total purchase price of approximately $220.5 million, in exchange for the cancellation of all the outstanding common shares of ProCentury. Shareholders of ProCentury Corporation who have questions may call the Information Agent, The Altman Group, at (800) 499-6377.
Visit the Century Surety web site here: www.centurysurety.com |
