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TransRe has acquired the exclusive renewal quotation rights to all of Maiden Reinsurance North America’s U.S. treaty customers from their diversified business. TransRe has also hired the U.S. treaty team from Maiden Re.
TransRe said it will immediately offer renewal quotations on this treaty book of business, which is focused on regional property/ casualty, accident and health and personal auto insurers, which are markets TransRe already underwrites.
Maiden Reinsurance North America is a subsidiary of Maiden Holdings, a Bermuda-based holding company formed in 2007.
The deal does not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust business or its International Insurance Services and Capital Solutions businesses in Europe, which form the significant majority of Maiden’s existing business and which the company said will remain part of its on-going business.
Regarding its remaining business, Maiden Holdings reported it is in “advanced discussions” regarding the sale of its wholly-owned subsidiary, Maiden Reinsurance North America, to a third party. The transaction would cover approximately $1.1 billion of loss and LAE reserves as of June 30, 2018.
The company said completion of the sale of the renewal rights to TransRe “begins the process of simplifying Maiden’s operations” and along with anticipated restructuring and related expense reductions, are expected to improve its business performance and profitability, and “significantly reduces the amount of capital required for Maiden’s operations.”
“The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and we believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability and broaden our ability to allocate capital to future strategies, which in turn will create value for our shareholders,” said Lawrence F. Metz, Maiden’s president and CEO designate.
TransRe said that Tom Highet, previously president of Maiden Reinsurance North America, and a team of underwriters, actuaries and claims personnel will join TransRe and operate from new offices in Mt. Laurel, New Jersey.
Highet, who was with Maiden Re (previously GMAC Re) for 30 years, has been appointed executive vice president and will report to Ken Brandt, president of TransRe North America.
TransRe is the brand name for Transatlantic Holdings, Inc. and its subsidiaries including Transatlantic Reinsurance Co. TransRe is wholly owned by Alleghany Corp.