National Security Group stock jumps 72% on merger deal with VR Insurance

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The National Security Group (NASDAQ: NSEC) skyrockets 72.2% pre-market after entering into a VR Insurance Holdings merger agreement, under which the latter agreed to acquire all of the outstanding common shares of NSEC for $16.35/share in cash, for an aggregate transaction value of approximately $41.4 million.

The acquisition is expected to be completed by the end of the second quarter of 2022.

“By combining our 75-year history of stability, underwriting expertise and commitment to our policyholders…we expect to realize greater opportunities for growth and increased ability to serve our policyholders and agent partners. “, said William L. Brunson, Jr. ., CEO of NSEC.

There are no financing conditions associated with the agreement.

Post-closing, VR Holdings will continue to leverage the existing operations and infrastructure of NSG’s wholly-owned P&C and life insurance subsidiaries.

The company’s current chief financial officer, Brian McLeod, will serve as chief operating officer of the company’s insurance subsidiaries and will also act as chief financial officer of VR Holdings.

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