Catalina to Buy Hartford Financial Products International & Downlands Liability Management

July 26, 2016

(Editor’s Note: The original version of this article published yesterday, July 26, omitted “International” from the headline “Catalina to Buy Hartford Financial Products International & Downlands Liability Management.” Insurance Journal regrets the omission.)

Catalina Holdings (Bermuda) Ltd. announced its wholly owned subsidiary Catalina Holdings UK Ltd. has signed a definitive agreement to acquire Hartford Financial Products International Ltd. (HFPI) and Downlands Liability Management Ltd. (DLM) from subsidiaries of The Hartford Financial Services Group Inc.

HFPI is a UK regulated insurance company into which The Hartford transferred the business of Excess Insurance Co. Ltd., Hart Re (the UK branch of Hartford Fire) and certain business written by London & Edinburgh via a Part VII transfer, which was completed in October 2015.

At March 31, 2016 HFPI and DLM had combined total assets of £712 million (US$1.023 billion), HFPI had undiscounted gross reserves of £477 million ($686 million), and together they had combined shareholder equity of £223 million (US$321 million).

Catalina* will acquire HFPI and DLM from available resources. Total assets of Catalina as at Dec. 31, 2015 pro forma for this acquisition and the acquisition of AGF Insurance Ltd. were $4.2 billion.

The transaction, which is expected to close in Q4 this year, is subject to approval by the Prudential Regulation Authority, the UK insurance regulator, and the Bermuda Monetary Authority.

Chris Fagan, chairman and chief executive of Catalina, said:

“HFPI is a large and well diversified business, the majority of which has been in run-off since 1993. It is managed by a professional and experienced team at DLM who will strengthen the breadth and diversity of Catalina’s UK business.”

* Catalina was established in 2005 to focus solely on the acquisition and management of non-life insurance/reinsurance companies in run-off.

Source: Catalina Holdings (Bermuda) Ltd.


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