S&P: White Mountains unchanged

Standard & Poor's said its ratings on White Mountains Insurance Group Ltd. (NYSE:WTM, BBB/stable) will be unaffected by today's announcement that it has signed an exchange agreement with Berkshire Hathaway Inc. to transfer certain run-off operations and a substantial amount of cash to Berkshire Hathaway in exchange for all or substantially all of the common shares of White Mountains held by Berkshire Hathaway.

The agency said that the transaction is subject to regulatory approvals and the receipt of a ruling from the IRS.

Under the terms of the agreement, Berkshire Hathaway will exchange its approximate 16.3% stake in White Mountains for 100% of a White Mountains subsidiary, the holdings of which will consist of Commercial Casualty Insurance Co., International American Group Inc. and $751 million in cash, subject to adjustment, the agency noted.

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