LA JOLLA, Calif., June 20, 2012 (GLOBE NEWSWIRE) -- PICO Holdings, Inc. (Nasdaq:PICO) announced today that it has entered into a definitive Stock Purchase Agreement with White Mountains Solutions Holding Company, a wholly owned subsidiary of White Mountains Insurance Group, Ltd. (NYSE:WTM) to sell its two insurance company subsidiaries, Physicians Insurance Company of Ohio, an Ohio stock insurance company, and Citation Insurance Company, a California stock insurance company (the "Companies"), which have been in "run-off" and not writing new insurance policies for several years.
The sale and purchase transactions will require Department of Insurance approvals in Ohio and California prior to closing. It is currently expected that the transaction will result in net proceeds of approximately $45 million to PICO, including a targeted pre-closing dividend from the Companies of $27.85 million, in aggregate, subject to adjustment based on insurance regulatory requirements. The final net proceeds and pre-closing dividend will not be determined until closing occurs. Following closing, PICO will have no residual insurance interests and no assets regulated under any state Departments of Insurance.
About PICO Holdings, Inc. - PICO Holdings, Inc. is a diversified holding company. The company seeks to build and operate businesses where significant value can be created from the development of unique assets, and to acquire businesses which it identifies as undervalued and where its management participation in operations can aid in the recognition of the businesses' fair value, as well as create additional value.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release that are not historical, including the expected closing of the transaction with White Mountain, the resulting net proceeds and targeted pre-closing dividend, are "forward-looking statements" based on current expectations and assumptions that are subject to risks and uncertainties. These forward looking statements could be affected by factors such as the ability of the parties to satisfy conditions to the closing of the transaction, including obtaining required regulatory approvals, and requirements relating to the sufficiency of assets held by the Companies, among others.
We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
For information regarding risks and uncertainties associated with our business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10‑Q, copies of which may be obtained by contacting us at (858) 456-6022 or at http://investors.picoholdings.com.
CONTACT: Max Webb Chief Financial Officer (858) 456-6022, ext. 216