Founder Steve Menzies has acquired Applied Underwriters Inc. and subsidiary North American Casualty Co. in a transaction valued at $920 million.
The transaction included the buyout of all other shareholders, including the 81% stake held by Berkshire Hathaway Inc.
In September, S&P Global Market Intelligence reported that Berkshire Hathaway had agreed to sell its stake in a group of companies led by Applied Underwriters for $737.1 million. The group includes Applied Underwriters Captive Risk Assurance Co. Inc., California Insurance Co., Continental Indemnity Co., Illinois Insurance Co., Pennsylvania Insurance Co. and Texas Insurance Co.
Menzies holds an 11.5% ownership in a subsidiary of United Insurance Co., which was expected to obtain control of Applied Underwriters and the group of companies following the transaction, according to the report.
"I have been pleased to have had Berkshire as a partner these many years, but the growth in Berkshire's other primary insurance operations has created increasing channel conflicts for Applied," Menzies said in a news release. "The transaction will now allow Applied to expand with no concerns for channel conflicts."
Quadrant Management-led Quasha Group joined Menzies in the acquisition.