Zurich Financial Services (ZFS) has sold London-based reinsurer Turegum Insurance to Harper Holdings, a newly formed subsidiary of Bermuda-based Castlewood Holdings.
Turegum wrote business in London from 1962 to 1992, before going into run-off. The run-off was managed by outsourced service provider Claims Management Group Ltd (CMGL).
The transaction provides Turegum with defined protection from ZFS against future adverse loss development while allowing ZFS to reduce its asbestos and environmental reserves.
CMGL managing director Jerry McArthur said: "This is one of the largest transactions of its kind."
Ratings company AM Best said the transaction would not affect ZFS's financial strength rating of A.
