M&A

OMAHA, Neb.–(BUSINESS WIRE)–Boston Omaha Corporation (NASDAQ: BOMN) (the “Company”) announced that on October 6, 2017, General Indemnity Group, LLC, a wholly owned subsidiary of the Company, entered into a Unit Purchase Agreement to acquire at a subsequent closing a majority equity interest in South Coast Surety Insurance Services, LLC (“South Coast”) from South Coast’s sole equityholder. South Coast is a large agency provider of commercial and contract surety bonds and surety products based in San Clemente, California. The Unit Purchase Agreement contains a seller option, and a contingent buyer option, for General Indemnity Group, LLC to acquire the remaining equity interests in South Coast. About Boston Omaha Corporation Boston Omaha Corporation is a public company engaged in several lines of business, including outdoor advertising and surety insurance, and maintains investments in several real estate services ventures. Forward-Looking Statements Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. http://www.businesswire.com/news/home/20171007005034/en/Boston-Omaha-Corporation-Announces-Surety-Company-Acquisition

Chicago, Ill.-based Hub International Limited announced on Monday that Hub Quebec has purchased “certain assets” from Patrice Varin, through a corporation held by him. Terms of the acquisition were not disclosed. Varin will join Hub Quebec, bringing with him a commercial line book of business focused on offering bonds and surety-related products, Hub noted in a press release. Varin is a member of the Surety Association of Canada and associated with MP2B Assurance, which offers personal, commercial, marine, aviation and specialty insurance, among others. The purchase is the latest Canadian acquisition from Hub. In January of this year, Hub acquired-based Mainline Insurance Brokers Inc., Indian Head Agencies (1980) Ltd., R&J McKay Agencies Ltd. and Cathedral Insurance Services (1995) Ltd. (together as Mainline). Based in southeastern Saskatchewan, Mainline has 16 offices throughout the province and is a “property and casualty and personal lines insurance solutions provider.” On Sept. 8, 2016, Hub acquired two brokerages in one day: Barrie, Ont.-based Sarjeant Insurance Brokers Limited and Edmonton-based managing general agency New Dimensions Underwriters Ltd. In both of those cases, terms of the acquisitions were not disclosed. Sarjeant specializes in providing P&C solutions, including auto, residential, recreational vehicle and watercraft insurance, as well as private client services for valuable and collections, fine arts, wine collections and personal excess liability. The company also offers risk management services, building valuations, risk audits and contractual reviews. Other Canadian acquisitions over the last few years include: The full-service commercial and personal lines brokerage Gamble & Associates Insurance Limited, which helped to establish a large footprint in southwestern Ontario; A book of auto dealer business from independent broker Alliance Assurance Inc. in New Brunswick, expanding Hub Atlantic’s general middle-market business; and The shares of Gibson’s Insurance Agency Ltd., a general brokerage servicing government automotive insurance needs and that maintains a large agriculture/farming customer base, resulting in Hub broadening its local market reach and specializations in Manitoba. Hub, a global insurance brokerage that provides property and casualty, life and health, employee benefits, investment and risk management products and services from offices located throughout North America, said in the release that it is “committed to growing organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise.” https://www.canadianunderwriter.ca/insurance/hub-international-purchases-certain-assets-quebec-surety-broker-1004118730/

BOSTON–(BUSINESS WIRE)–General Indemnity Group, LLC, (“GIG”), a subsidiary of Boston Omaha Corporation (NASDAQ: BOMN) announced today that it acquired Surety Support Services, Inc., of Overland Park, Kansas. Tracing its origins back almost 40 years, Surety Support Services (“SSS”) provides surety-only services to contractors, insurance agents, brokers, and all types of businesses. In addition to expertise with hard to place and SBA program bonds, SSS also has numerous facilities for standard and preferred accounts. This is the third acquisition for GIG in the surety space. The business and its employees will remain under the continued leadership of Gary Bradley in their current location outside of Kansas City. Bradley commented, “The team at Surety Support Services is excited to partner with GIG. We share the common objective of working diligently for each of our customers, ensuring exceptional results and building lasting relationships. Becoming part of the GIG team will provide our loyal clients and dedicated staff additional resources and exciting new options to offer.” Terms of the transaction were not disclosed. For more information on Surety Support Services, or for any surety needs, please visit www.suretyss.com. SSS provides bonds for customers in all 50 states. http://www.businesswire.com/news/home/20170717006128/en/General-Indemnity-Group-LLC-Announces-Acquisition-Surety

i2B Capital has closed an $8 million structured term loan to National Surety Underwriters (NSU) to fund the capitalization of a new reinsurance subsidiary and the merger of McCabe and Independent Corporate Underwriters. NSU – a special-purpose surety reinsurance captive and underwriting agency headquartered in Philadelphia – is the sole owner of the reinsurance entity, National Fidelity Reinsurance Company, being set up to underwrite and reinsure surety bonds of up to $2 million per bond and $4 million in the aggregate per principal insured through its licensed insurance partner, Clear Blue Insurance Company. Barbara Anderson, Chief Operating Officer (COO) of i2B Capital, explained the firm’s goal over the initial 36-month structured term loan is to prepare NSU for traditional institutional financing in the future; “To accomplish that objective, we will provide the growth capital along with our commercial lending expertise to help NSU prepare for the disciplined reporting requirements and credit processes at the next level.” NSU will also use the funding to finance a merger of McCabe with a Managing General Underwriter (MGU) specializing in surety bonds based in New Jersey – Independent Corporate Underwriters, (ICU). Surety bonds will be written and placed with multiple carriers through the ICU merger with MGU which will enable surety bonds of up to $100 million to be written with insurance carrier approval. National Surety Underwriters Chief Executive Officer (CEO), Rennie Rodriguez, added; “Our expertise is building and managing specialty insurance agencies and we see tremendous opportunity for consolidation in a fragmented surety bond industry. “Through offering a unique package to contracted surety bond agents and targeted strategic acquisitions, we are building a networked system of top-line surety agents.” In addition to the $8 million loan, the NSU secured $3.5 million from investors to the transaction closing. Larry Curran II, CEO of i2B Capital, a provider of direct financing to niche-market financial entrepreneurs, said; “This funding is an excellent example of i2B Capital’s ability to navigate and resolve complex business financing issues. “The transaction included capitalization for three companies in three states with wide-ranging legal and regulatory requirements to create one synergistic entity able to service a broad spectrum of surety requirements.” https://www.reinsurancene.ws/national-surety-underwriters-secures-8mn-i2b-capital-funding-reinsurance-subsidiary/

TORONTO, May 9, 2017 – Northbridge Financial Corporation is expanding its product line to include surety bonds. Starting June 1, 2017, businesses across Canada will have access to an extensive selection of contract and commercial bonding solutions. “Northbridge is now open for surety business,” says Silvy Wright, President & CEO, Northbridge Financial Corporation. “Our added product capability allows us to enhance our service to existing and new customers in key industries where we’re targeting further growth, such as the Construction and Contracting sector.” Northbridge will enter the surety market by acquiring the surety underwriting business of Fenchurch General Insurance Company, which has a proven track record of profitability. The acquisition includes United Surety Limited – which will be re-branded as Northbridge Surety Limited – and Capital Administration Services Inc., a provider of funds control services. The transaction is scheduled to be completed on May 31, 2017. “We’re pleased to welcome this specialized team of surety experts, led by Iqbal Bhinder, who brings a decade of experience in the surety business to our operations,” says Silvy Wright. https://www.nbfc.com/northbridge-expands-product-line-include-surety-bonds/

Intact Financial Corp (IFC.TO), Canada’s largest property and casualty insurer, said it would buy U.S.-based specialty insurer OneBeacon Insurance Group Ltd (OB.N) for $1.7 billion, creating a specialty insurer focused on small- and mid-sized businesses. The $18.10 cash offer represented a 15.3 percent premium to OneBeacon’s Tuesday close. Shares of OneBeacon, controlled by White Mountains Insurance Group Ltd, were trading at the offer price in after-hours trading. The deal will create an insurer with over C$2 billion ($1.46 billion) of annual premiums, the company said. Intact said it plans to finance the deal and related expenses using a combination of C$700 million of equity financing, about C$700 million of excess capital and about C$1 billion of financing consisting of loans, notes and preferred shares. OneBeacon’s debt of about $275 million will remain outstanding, Intact said. Goldman Sachs is the financial adviser for Intact, while Credit Suisse advised OneBeacon. http://www.reuters.com/article/us-onebeacon-insur-m-a-intact-financial-idUSKBN17Y2GJ