NI Holdings, Nodak Insurance Company’s stock holding company, has completed its sale of Westminster American Insurance Company to a private party for $10.5 million in cash.
First announced in May, the Westminster divestment comes four and a half years after NI Holdings acquired the commercial insurance subsidiary.
When Westminster was snapped up in January 2020, the plan was to further diversify NI Holdings’ portfolio of products geographically and by business line. At the time, it was the group’s second deployment of capital from its 2017 initial public offering.
Back then, NI Holdings president and chief executive Michael J. Alexander (pictured) commented: “We look forward to the integration of Westminster into our group of companies in the coming months. We welcome John [Scott, Jr.] and his team to NI Holdings.”
Fast forward to earlier this year when NI Holdings revealed the offloading and Alexander lifted the lid by saying: “The decision to sell Westminster American Insurance Company was made in the best interest of NI Holdings and its shareholders.
“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.”
NI Holdings is the name behind Nodak Insurance – subsidiaries of which include American West Insurance Company, Primero Insurance Company, and Battle Creek Insurance Company – and Direct Auto Insurance Company.
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