Catalina Holdings (Bermuda) Ltd. has announced that its wholly owned subsidiary, Catalina Echo Limited, signed a definitive merger agreement on August 22, 2011 to acquire Residential Loss Control Holdings, LLC (RLCH).
Catalina specilizes in offering “finality and immediate capital release” to owners of insurance and reinsurance companies and portfolios that are in run-off.
Catalina explained that RLCH “owns two risk retention groups, National Home Insurance Company (NHIC) and Residential Insurance Company (RIC), based respectively in Colorado and Hawaii.
“NHIC and RIC underwrote new home warranty businesses until they were placed into run-off in August 2010. As at 30 June 2011, and as adjusted for a pre closing dividend, RLCH had total assets of $168.4 million, gross technical reserves of $113.7 million and net assets of $19.4 million. The purchase price was at a discount to net asset value.”
The acquisition is subject to regulatory approval from the Colorado and Hawaii Departments of Insurance. It is expected to close in the fourth quarter of 2011.
Chris Fagan, Chairman and Chief Executive of Catalina commented: “RLCH and its management team is well known to Catalina as we are a re-insurer to NHIC and familiar with the business. The acquisition is a good addition to our existing US business.
“We continue to be very acquisitive, and we are seeing an increased flow of run-off acquisition opportunities.”
Source: Catalina Holdings (Bermuda) Ltd
Was this article valuable?
Here are more articles you may enjoy.
Why New York’s Attorney General Objects to Trump’s Bond Insurer 
Chubb to Acquire MGA Healthy Paws From Aon 
Vintage Ferrari Owners’ Favorite Mechanic Charged With Theft, Fraud 
AIG General Insurance Chairman McElroy to Retire May 1 
