Investment Banking - Mutual Insurers Holding Company

Transactions | Insurance

Client: Mutual Insurers Holding Company
Industry: Insurance
Transaction Type: Rights Conversion
Role: Appraisal

  • Mutual Insurers Holding Company (“MIHC”) is the holding company for First Nonprofit Insurance Company (“FNIC”), a property & casualty insurance company headquartered in Chicago, Illinois.  AmTrust Financial Services, Inc. (“AFSI”) headquartered in New York City, is a multinational insurance holding company with approximately $6.8 billion in assets.
  • MIHC, as the parent of FNIC, merged into AFSI in conjunction with the conversion of MIHC from a mutual insurer into a stock company as per the Delaware Insurance Code governing demutualizations.
  • At March 31, 2013, FNIC had assets of $148.0 million and equity of $55 million.
  • FNIC sought a sponsored transaction in order to obtain capital to achieve its growth potential in the national market by expanding into new states as well as building out its IT infrastructure and online customer platform.
  • The Firm provided the formal appraisal which established the pro forma market value used in the sponsored subscription rights conversion process.
  • The midpoint of the appraisal implied gross proceeds of the subscription rights conversion were $57.0 million, which represents 53% of pro forma book value.
  • This transaction represented the tenth subscription rights conversion transaction that the Firm or its professionals participated in.