Folksamerica Reinsurance Company, a wholly-owned subsidiary of Bermuda’s White Mountains Re Group, has completed its acquisition of Mutual Service Casualty Insurance Company, a Minnesota-domiciled, runoff insurer formerly affiliated with Illinois-based Country Insurance & Financial Services.

The amnnouncement came from White Mountains Re’s Bermuda headquarters yesterday.

“As part of a sponsored demutualisation and conversion to a stock company, Mutual Service Casualty has been renamed Stockbridge Insurance Company,” said the statement. “Folksamerica paid approximately $33.6 million for Stockbridge and will record an after-tax GAAP gain on the transaction of approximately $21 million.

“As part of the transaction, Country Mutual Insurance Company, a member of Country’s affiliated group of companies, will provide Stockbridge with approximately $25 million of reinsurance protection in excess of Stockbridge’s carried reserves as of September 30, 2006. Folksamerica is not acquiring any infrastructure or employees in the transaction.”

Tom Hutton, president and chief executive officer of White Mountains Re, said: “We are very pleased with the terms of this runoff acquisition put together by our Simsbury, CT-based Folksamerica Re Solutions unit and with our ability to assist Country in its desire to focus on its ongoing core operations.”