Catalina Receives New Equity Commitment from Managed Funds

August 5, 2013

Catalina Holdings (Bermuda) Ltd, a long term consolidator in the non-life run-off sector, announced that funds and other entities “managed or advised by Apollo Global Management, and/or its subsidiaries (collectively, ‘Apollo’) have agreed to acquire, via a newly formed entity, the entire shareholdings of the RBS Special Opportunities Fund and Century Capital in Catalina, subject to regulatory approval.”

Catalina noted that the “Apollo Funds have joined the continuing shareholders of Catalina, Caisse de dépôt et placement du Quebec and Ontario Teachers’ Pension Plan, in committing a combined $200 million of new equity to support Catalina’s continued growth following closing of the share acquisition.

“In addition, NFF LP, Inc (Nomura Fund of Funds) the Guernsey based fund investment vehicle of Nomura European Holdings Plc, has also exchanged its equity shareholding in Catalina for a loan note.”

Catalina said it is continuing to “expand its presence in the Bermudian, European and US non-life run-off markets, working closely with insurers and reinsurers to provide finality solutions relating to their non-core run-off liabilities. Over the past twelve months, Catalina completed three transactions, and as at 30 June 2013 reported net tangible assets of $435 million and total assets of $1.4 billion.”

CEO Chris Fagan commented: “The Apollo Funds, together with Caisse and Ontario Teachers, are committed to support Catalina’s continued growth. We have built an effective platform for the consolidation of legacy portfolios allowing us to deliver tangible value to sellers of legacy liabilities in the non-life sector.

“Our transaction track record and growth in NAV to-date clearly demonstrates Catalina’s ability to successfully execute transactions and build shareholder value. Catalina is highly cash generative and we have considerable available resources at hand for acquisitions, portfolio transfers and retrospective reinsurance underwriting. Combined with our existing financial resources the additional $200 million of equity from our shareholders will help us to accelerate Catalina’s growth and position it to execute on the largest transactions in the sector.”

Source: Catalina Holdings

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