Run-off specialist Catalina acquires Allianz subsidiary
Catalina Holdings UK, a subsidiary of Catalina Holdings, a consolidator in the non-life insurance/reinsurance run-off sector, is to acquire AGF Insurance from AGF Holdings (UK), a subsidiary of Allianz SE.
AGF is a UK regulated insurance company incorporated in 1960. It wrote predominantly direct employers and public liability insurance in the UK. It ceased writing new business and went into run-off in 1999.
As of 31 December 2015 AGF had total assets of £270 million ($389 million), undiscounted gross reserves of £185 million ($266 million), and pro-forma shareholder equity of £79 million (U$113 million).
Catalina will acquire AGF from available resources. Total assets of Catalina as of 31 December 2015 pro forma for this acquisition were $3.2 billion.
The transaction is expected to close in the third quarter of this year.
Chris Fagan, chairman and chief executive of Catalina, said: “AGF will be Catalina’s first significant acquisition of UK employers liability legacy risk. We have been developing our expertise in this class of business over several years and retain an appetite to acquire more of this class and related legacy risk.
“Catalina’s business model combines active asset and liability management with low operating costs and a competitive cost of capital. This is attracting an increasing number of portfolios and acquisition in Europe and the US as re-insurers seek to release capital or improve the efficiency of their legacy liabilities. Solvency II has had an increasing impact in the build up to its implementation in January this year.”
