Catalina Holdings Ltd., a Bermuda-based consolidator in the non-life run-off sector, announced it has agreed to acquire SPARTA Insurance Holdings, a property/casualty underwriting company in Hartford, Conn.
Following the closing of the transaction, Catalina plans to place some of SPARTA’s business into run off and to transfer SPARTA’s alternative market business to Arch Insurance Company under a separate renewal rights agreement. SPARTA predominantly focuses on specialty program and risk transfer alternatives in the U.S.
At the end of 2013, SPARTA had total assets of $911 million, gross reserves of $495 million, net reserves of $309 million and shareholder equity of $201 million.
Catalina will acquire SPARTA from cash at hand and a senior debt facility. The transaction, which is subject to regulatory approval, is expected to close during the third quarter of 2014.
This is Catalina’s 12th transaction since the business was established in 2005. Total assets of Catalina pro forma for this acquisition will be in excess of $2.9 billion.
The acquisition of SPARTA, which follows Catalina’s recent acquisition of Alea North America, adds to Catalina’s operations in the U.S. Northeast region, said Chris Fagan, chairman and chief executive of Catalina. “I am also pleased that a renewal rights agreement has been struck with Arch Insurance Company, under which some staff will continue writing the alternative markets business,” Fagan said.
Source: Catalina Holdings Ltd.
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