NI Holdings To Sell Westminster American Insurance Company For $10.5M In Cash

NI Holdings, Inc. (NASDAQ:NODK) ("NI Holdings") announced today an agreement to sell its wholly-owned commercial insurance subsidiary, Westminster American Insurance Company, to a private party. The total consideration for the sale is $10.5 million in cash, with proceeds planned to be used for general corporate purposes. The transaction was unanimously approved by the Board of Directors and is expected to close in 2024, subject to regulatory approval and other closing conditions.

 

"The decision to sell Westminster American Insurance Company was made in the best interest of NI Holdings and its shareholders," said Michael J. Alexander, President, and Chief Executive Officer. "The commercial habitational insurance market has undergone significant changes in recent years, which were largely the result of unforeseen circumstances including the COVID-19 pandemic, the persistent high inflationary environment, tort liability rulings in certain states, and the challenging property reinsurance market. Given these changes, we believe this market no longer aligns with the strategic direction of NI Holdings. This sale will allow us to refocus resources to our core businesses, which we believe will help NI Holdings deliver appropriate returns over time."