View this article online: https://www.insurancejournal.com/news/international/2012/09/24/264031.htm
Catalina Holdings (Bermuda) Ltd has announced that it has signed a definitive Share Purchase Agreement to acquire 100 percent of the shares in KX Reinsurance Company Limited, including KX Re’s wholly owned subsidiary OX Reinsurance Company Limited, from Tawa plc.
The announcement noted that as of March 31st ,2012 KX Re’s consolidated total assets “were $114 million, and undiscounted gross liabilities were $69 million. The total consideration for the acquisition is $28 million in cash and could reach $30 million, depending on financial performance of KX Re between now and completion.
“Completion of the transaction is conditional on receiving FSA approval to the change of control, which is expected to be received by the end of 2012.
“The acquisition consideration will be satisfied from Catalina’s cash at hand and a senior debt facility.”
KX Re’s history states that it “was put into run-off in 1992 and sold by CNA Financial Corporation to Tawa in 2007. It is a mature run-off with a wide variety of exposures, predominantly in the US, where the majority of risks relate to 1985 and before. OX Re was acquired by Tawa in March 2011, and was formerly Oslo Reinsurance Company (UK) Limited.”
Catalina’s Chairman and CEO Chris Fagan commented: “KX Re is an interesting acquisition for Catalina because it gives us exposure to US asbestos liabilities, an area in which our reserves have traditionally been very light.
“We have been focused on improving our knowledge of US asbestos liabilities over the last few years and are pleased to develop our business in this area. KX Re is our second acquisition in this quarter, and we are in negotiations on a number of other attractive opportunities some of which we expect to conclude and announce this year.”
Source: Catalina Holdings