Reinsurer Validus Holdings Ltd. said Monday it would buy specialty insurer Western World Insurance Group Inc. — a New Jersey company whose three operating companies are located in Keene, N.H. — for about $690 million in cash to strengthen its presence in the United States.
Validus said it intends to use existing funds for the deal, which is expected to close in or about the end of the third quarter of 2014.
Franklin Lakes, N.J.-based Western World offers auto and property insurance and, within Validus, it will operate as an independent business led by its current management team.
“Joining Validus is a great outcome for Western World. Validus brings capital and expertise in short tail classes of business which will advance the competitive advantages in all of our underwriting divisions,” said Tom Mulligan, Western World’s Chief Executive Officer, in a news release.
Western World Insurance Group includes Western World Insurance Co., Stratford Insurance Co., and Tudor Insurance Co. All three have a Keene, N.H. address. Company officials could not be reached for comment Tuesday.
Validus provides reinsurance and insurance services and operates through its three Bermuda-based units — Reinsurance Ltd., Talbot Holdings Ltd. and AlphaCat Managers Ltd.
The company bought Flagstone Reinsurance Holdings for about $600 million in cash and stock in 2012 to boost its property reinsurance business.