Catalina Holdings (Bermuda) Ltd. announced that it has entered into an agreement through its subsidiary company Catalina Insurance Ireland Limited, with Quinn Insurance Limited (under administration) for the portfolio transfer of legacy insurance liabilities. Catalina Ireland is domiciled in Ireland and regulated by the Central Bank of Ireland.
The announcement signals the end of one of the biggest casualties (and most high profile dramas) of the economic crisis in Ireland, the collapse of Quinn Insurance. The company was ordered into administration, a form of bankruptcy protection in Marsh 2010.
Under the current agreement “a portfolio of UK and EU insurance liabilities in run-off will be transferred to Catalina Ireland,” said the announcement. “The subject portfolio had gross and net insurance liabilities of €463 million and €461 million [$549 million and $547 million], respectively, as at September 30, 2014.
“The portfolio transfer will be subject to regulatory approval in Ireland and the approval of the High Court of Ireland. As part of the transfer process, Catalina will inject required capital into Catalina Ireland. The portfolio transfer process is expected to complete during the second half of 2015.
“Total assets of Catalina pro forma for this transaction will be in excess of $3.3 billion.”
Catalina’s Chairman and CEO Chris Fagan commented: “This transaction with Quinn Insurance which follows our agreement in 2014 with Delta Lloyd to reinsure over $200 million of legacy liabilities, demonstrates the growing value of Catalina’s platform in providing solutions for legacy liabilities across Europe.
“Together with our acquisition of Glacier Re in 2010, Catalina has now acquired over $1.1billion of European run-off liabilities. We remain confident about our ability to help insurance and reinsurance companies dispose of non-core legacy liabilities across Europe in the future.”
Source: Catalina Holdings (Bermuda) Ltd.
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