White Mountains to acquire majority stake in Distinguished Programs

By Chris Munro

July 7 - (The Insurer) - White Mountains Insurance Group is set to acquire a majority stake in Distinguished Programs after agreeing to buy approximately 50% of the MGA and program administrator's outstanding equity interests for $230 million.

The transaction will build on Bermuda-based White Mountains’ approximately 1% existing holding in Distinguished’s outstanding equity interests.

Distinguished’s current controlling equity holder Aquiline Capital Partners will retain a significant minority stake in the business following completion of the deal.

Distinguished's current executive management team, which includes company leaders Bill Malloy, Jason Rotman and Steve Sitterly, will also remain significant equity holders.

The transaction is scheduled to close in the third quarter of 2025, subject to regulatory approvals and other customary closing conditions.

Distinguished, which has been in operation since 1995 and is headquartered in New York, currently places more than $550 million in premiums annually across its diversified portfolio of 12 specialty property and casualty programs.

Those programs provide coverages for commercial real estate, hotels and restaurants, community associations, environmental and construction professional, cyber, surety, executive lines, inland marine, and fine arts and collectibles.

"Partnering with White Mountains marks a new and exciting chapter for Distinguished,” said Rotman, Distinguished’s president.

“We believe that their deep insurance expertise, outstanding track record and relevant resources make them the ideal partner for our next phase,” Rotman noted.

“Bill, Steve and I look forward to maintaining and increasing the momentum created over the last three years of partnership with Aquiline.”

For White Mountains, the planned acquisition of the majority stake marks a meaningful return to the programs and MGA space after it sold NSM Insurance Group to investment funds affiliated with Carlyle in a 2022 transaction valued at $1.78 billion.

“We've been keen observers of Distinguished's recent progress, and we are pleased to make this acquisition alongside fellow shareholders and a seasoned management team we've known for many years,” said Manning Rountree, White Mountains’ CEO.

“They are well-positioned in an attractive and dynamic market, and we look forward to partnering with the team to capitalize on the organic and inorganic growth opportunities ahead,” Rountree added.

Cravath, Swaine & Moore LLP acted as White Mountains’ legal adviser.

Willkie Farr & Gallagher LLP acted as legal adviser to Distinguished and Aquiline Capital Partners. Mayer Brown LLP acted as legal adviser to Distinguished’s management team.