TransRe takes over Maiden Re US treaty renewal rights, hires whole team

TransRe, the reinsurance arm of Transatlantic Holdings and a wholly owned subsidiary of Alleghany Corporation, has acquired the exclusive renewal rights to all of Maiden Re's US treaty reinsurance underwriting business.

The transaction, which has now closed, does not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe, which forms the significant majority of Maiden’s existing business and will remain as part of its on-going business.

TransRe has also hired the US treaty team from Maiden Re to further expand its services and commitment to the regional, accident & health and personal auto carriers. Tom Highet, previously president of Maiden Reinsurance North America, and a team of underwriters, actuaries and claims personnel will join TransRe and operate from new offices in Mt Laurel, New Jersey. Highet, who was with Maiden Re (previously GMAC Re) for 30 years, has been appointed executive vice president and will report to Ken Brandt, president of TransRe North America.

Maiden Re expects the completion of the sale of the renewal rights to simplify its operations, and along with anticipated restructuring and related expense reductions, to improve its business performance and profitability, and significantly reduces the amount of capital required for Maiden’s operations.

“The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and we believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability and broaden our ability to allocate capital to future strategies, which in turn will create value for our shareholders,” said Lawrence Metz, Maiden’s president and chief executive officer designate.

Brandt commented: "We are delighted to welcome Maiden's accomplished team and believe the move to be an excellent strategic and cultural fit for customers and us. During the past 30 years Tom and his team have built a strong and respected franchise, with excellent customer and broker relationships. We know these lines of business well, and together with our new colleagues we are well positioned to serve the needs of all our customers and brokers."

Highet added: "We believe that TransRe offers our customers an ideal fit for continuity of approach, appetite and service going forward. With TransRe's A+ balance sheet, additional product range and great underwriting culture, we look forward to maintaining and strengthening our customer and broker relationships."

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