NYMAGIC is going to be acquired by ProSight Specialty Insurance Holdings, a specialty property-casualty insurance company.
Shareholders in the New York-based insurance holding company will receive $25.75 per share, which represents a premium of 23.5% to NYMAGIC’s closing price July 14 of $20.85.
ProSight Specialty Insurance was founded by CEO Joseph Beneducci and a group of senior executives from the property-casualty industry and is backed by affiliates of TPG Capital and GS Capital Partners.
NYMAGIC’s chairman, Robert G. Simses, in a statement he was “pleased to reach an agreement” with ProSight. “Our board of directors also strongly believes that this transaction will create attractive long-term opportunities for our employees, customers and business partners,” Simses said.
The transaction will be 100% equity funded by ProSight. Completion of the transaction, which is expected to occur in the fourth quarter of 2010, is subject to the approval of NYMAGIC stockholders, customary closing conditions and regulatory approvals, officials said.
NYMAGIC specializes in underwriting ocean marine, inland marine and non-marine liability insurance, and whose agency subsidiaries specialize in establishing markets for such business. It owns and operates New York Marine And General Insurance Co., Southwest Marine And General Insurance Co., and Gotham Insurance Co.
It also owns an insurance manager, MMO INC, which underwrites business on behalf of its insurance companies. The company has offices in New York City and Chicago, and on Long Island.
ProSight deals with limited, exclusive distribution partners.
ProSight Specialty Insurance to buy NYMAGIC via IFAwebnews.com .
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