Catalina enters into $77m construction deal
Run-off acquirer Catalina Holdings has entered into a definitive agreement with NationsBuilders Insurance Company (NBIC) to transfer a portfolio of US residential construction liabilities.
The novation covers $77 million of construction liabilities in run-off which will be transferred to Catalina’s Bermuda subsidiary, Catalina General Insurance.
As part of the transaction, Catalina will also acquire the San Diego based claims operation that manages the residential construction liability portfolio. The transaction excludes the heavy construction liabilities associated with NBIC’s core business.
Catalina said the transaction, it’s third of 2014, is expected to close during the third quarter of 2014.
Chris Fagan, chairman and chief executive of Catalina, said: “Catalina has significant experience managing construction liability risks and as a result we were able to offer NBIC an effective solution for its legacy residential construction liability portfolio.
“The NBIC claims operation is staffed by high quality professionals and will help to accelerate the development of our US claims operations along with our recent acquisitions of Alea and SPARTA. This is our third announced transaction in 2014 and we continue to maintain a healthy pipeline of transaction opportunities.”
