UPDATE: As of October 2, 2018, the closing of the transaction with Berkshire Hathaway has been finalized. Please visit the official announcement to read about the closing or click here for additional details.
It has been a year since MLMIC first shared the news that the company entered into a definitive agreement to be acquired by National Indemnity Company, a subsidiary of Berkshire Hathaway, Inc. In February, we were able to share with policyholders a timeline of the anticipated steps in the process, and we are happy to report that the transaction is moving according to plan.
Policyholders have reacted to the affiliation with Berkshire Hathaway with enthusiasm, and questions that we receive are typically about timing, payouts, next steps and notices. Below is the information that is most relevant to those inquiries:
- The transaction is still expected to close around year end.
- Cash consideration to owners of eligible policies will be distributed after the closing of the acquisition.
- There is no change in our estimate of cash consideration at this time. The payout is expected to approximately equal the premiums paid by owners of eligible policies from July 14, 2013, to July 14, 2016.
- Policies issued or renewed after July 14, 2016, are required to have a notice that says that such policies are not eligible to receive cash consideration in connection with the transaction.
Additional details will be finalized along the way with the NYS Department of Financial Services (DFS). The transaction will be described more fully in a Policyholder Information Statement that will be shared with policyholders prior to the demutualization vote. We will provide further updates on our website as the transaction progresses. If you have questions in the meantime, please do not hesitate to call 1-888-998-7871.