NEW YORK (TheStreet) -- Shares of Meadowbrook Insurance Group (MIG) are advancing 0.94% to $8.62 on Monday on high trading volume after the California Department of Insurance approved Fosun International Limited's acquisition of Meadowbrook's California subsidiaries.
Meadowbrook's subsidiaries in California include Star Insurance, ProCentury Insurance, and Williamsburg National Insurance.
In December of 2014, Fosun agreed to buy Meadowbrook for about $433 million, The Wall Street Journal reported.
Under the new deal, Meadowbrook will maintain its Michigan headquarters and continue to operate under the Meadowbrook brand name, the Journal added.
About 1.9 million shares of Meadowbrook were traded by 2:50 pm on Monday, above the company's average trading volume of about 310,000 million shares a day.
Michigan-based Meadowbrook Insurance Group provides risk management solutions to businesses, groups, associations and individuals. Shanghai-based Fosun Int'l is a private-owned conglomerate that engages in pharmaceutical and healthcare, property development, iron and steel products, mining, asset management, and insurance businesses primarily in Mainland China and Hong Kong.
Separately, TheStreet Ratings team rates MEADOWBROOK INS GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEADOWBROOK INS GROUP INC (MIG) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."