Seven years after investing in the Bermuda-based insurer, Berkshire will exchange its 1.724 million shares for about $751 million of cash plus a unit that holds two businesses, Commercial Casualty Insurance Co and International American Group Inc, with $435 million of assets and $58 million of adjusted shareholder equity, White Mountains said. The transaction is valued at $485 per share, it said.
Ray Barrette, White Mountains' chief executive, said the agreement lets the Hamilton-based company exit businesses with potentially volatile reserves, use capital more efficiently and redeem stock at a small premium to book value. White Mountains would have about 8.8 million shares after the transaction.