NationsBuilders Insurance Co. will transfer its residential construction liabilities totaling $76,250,000 to Catalina Holdings (Bermuda) Ltd. under a novation agreement announced today.
Also, as part of the transaction, Catalina, a consolidator in the non-life insurance/reinsurance run-off sector, will acquire the San Diego based claims operation that manages the residential construction liability portfolio.
NBIC assumed the liabilities from ProBuilders Insurance Co. from 2002 to 2010.
The transaction with Catalina does not include heavy construction liabilities associated with NBIC’s core business.
Bill Tepe, president of NBIS, said the transfer of NBIS’ legacy run-off reserves to Catalina “allows NBIS management to provide greater focus on its core business of offering risk management and insurance to the crane and rigging, specialized transportation, and concrete pumping industries.”
The transaction, which is expected to close July 31, 2014, is subject to approval by the District of Columbia Department of Insurance and the Bermuda Monetary Authority.
Atlanta-based NationsBuilders Insurance Services, parent of NBIC, is a portfolio company of SunTx Capital Partners of Dallas.
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