The National Security Group, based in Elba, and VR Insurance Holdings, a new Delaware company, have agreed to a merger, with VR Holdings acquiring the Elba company.
The total transaction value is $41.4 million, according to a news release. VR Holdings was founded by Vivek Ranadivé, founder and managing director of Bow Capital Management LLC and CEO of the Sacramento Kings.
“We believe this transaction is in the best interest of NSG’s shareholders and policyholders,” said William Brunson Jr., CEO of NSG. “By combining our 75-year history of stability, underwriting expertise and commitment to our policyholders with the financial resources of the investor group led by Mr. Ranadivé, we expect to realize greater opportunities for growth and an enhanced ability to serve our policyholders and agent partners.”
The agreement requires approval by holders of the majority of NSG’s outstanding common shares. The acquisition is expected to close by the end of the second quarter of 2022.
Founded in Elba in 1947, NSG, through its property and casualty and life insurance subsidiaries, is a specialty underwriter of property, casualty, life, accident and health insurance in 10 states. The company also offers life, accident and health, supplemental hospital and cancer insurance products.
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