Meadowbrook Insurance, ProCentury Corporation Close Merger

Meadowbrook Insurance Group, Inc., 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, said, “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 is known for its program expertise, while ProCentury has earned a reputation for a 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, Cubbin said.

There are very few redundancies between the two firms. Meadowbrook’s programs and ProCentury’s products and wholesale agent distribution systems do not overlap.

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.

Meadowbrook Insurance Group is a risk management organization, specializing in alternative risk management solutions for agents, professional and trade associations, and small to medium-sized insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the New York Stock Exchange under the symbol “MIG.” For further information, please visit Meadowbrook’s corporate Web site at www.meadowbrook.com.

ProCentury Corporation is a specialty property and casualty insurance holding company. Its subsidiary, Century Surety Company, underwrites property and casualty insurance for small and medium-sized businesses. Century Surety Company primarily writes excess and surplus lines insurance and markets its products through a select network of general agents. ProCentury Corporation common shares are listed on Nasdaq under the symbol “PROS.” For further information on ProCentury, please visit www.procentury.com.

Source: Meadowbrook Insurance Group, ProCentury Corporoation

Topics Mergers & Acquisitions Excess Surplus Property Casualty