20 August 2014 Insurance

Compre completes acquisition; boosts team

Independent re/insurance legacy specialist Compre has completed the acquisition of Hamburger Internationale Rückversicherung (HIR) from Tawa after obtaining regulatory approval from German regulator BaFin.

Dr Hubertus Labes, a run-off specialist, has joined Compre as managing director of Germany and Austria to support its strategy of making further acquisitions in these countries. He will remain as chief executive officer of HIR.

Johannes Jacobsen has also joined Compre as reinsurance claims manager and will remain authorised officer of HIR. He was previously reinsurance claims manager with responsibility for all legal matters at Chiltington International as well as an authorised officer of HIR and will be based in Hamburg.

The acquisition of HIR has increased Compre’s technical reserves by around 40 percent. The specialist added that the acquisition has expanded its European footprint, which will help facilitate its aggressive growth strategy.

In addition, Compre is currently undergoing a capital raising exercise which will further enable it to acquire insurance and reinsurance portfolios in run-off with values up to €100 million.

Nick Steer, chief executive of Compre, said: “We are extremely pleased to have completed the strategically significant acquisition of HIR and to welcome Dr Hubertus Labes and Johannes Jacobsen. Acquiring HIR gives Compre a presence in two major German insurance hubs, Hamburg and Munich, which underlines our commitment to Germany, Europe’s largest market for legacy business and signals our intent to undertake further acquisitions in Germany and German speaking markets.

“Run-off is becoming an increasingly important mechanism for European re/insurers to free capital tied up in legacy business. Demand is being driven by regulation, particularly Solvency II, capital oversupply, low investment returns and the corresponding need for operational efficiency. Re/insurers are therefore increasingly reliant on run-off to manage the market cycle while benefitting from the increased flexibility to capitalise on opportunities as they arise.”

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