Catalina Holdings, a newly established Bermuda based company has announced the acquisition of Overseas Partners Re from Overseas Partners for $170.5m.
At 30 June 2005 OP Re had total assets of $363m and gross loss reserves of $141m, according to a statement from Catalina.
OP Re is a wholly owned subsidiary of OPL, which was founded in Bermuda in 1983. OP Re was put into run-off in early 2002 with $2.7bn of liabilities. OP Re's name will be changed to Catalina Reinsurance after Closing.
Chris Faganm who established Catalina and who will become chief executive, said: “OP Re represents a good first acquisition for us and an ideal base from which to grow our portfolio in the medium term.
There are few options offered to insurance companies to release unproductive capital from businesses or portfolios in run-off. We aim to offer solutions to insurers wishing to achieve an exit in cases where the ultimate outcome of liabilities is relatively predictable and where we can generate an acceptable return."
The acquisition is subject to Bermuda Monetary Authority approval.
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