Zurich sells $2bn portfolio to Catalina
Zurich Insurance Group has agreed to sell its pre-2007 UK legacy employers’ liability policies portfolio to Bermuda-based specialist acquirer of legacy insurance portfolios Catalina Holdings.
As of Dec. 31, 2017, the portfolio comprised gross liabilities of $2 billion relating principally to industrial disease related claims, including asbestos.
“The sale of this portfolio reflects Zurich’s strategy to eliminate or reduce exposure to legacy lines of business,” said George Quinn, Zurich group chief financial officer. “This focus on actively managing capital allocation to improve overall returns will continue in 2019,” Quinn added.
As part of the deal Zurich Insurance will enter a reinsurance agreement with Bermudan reinsurer Catalina General Insurance. The policies and liabilities will be transferred to Catalina London. The transaction is subject to regulatory and court approvals, with the final transfer expected to occur within two years.
In the fourth quarter of 2018 upfront expenses related to the transaction are expected to lead to a small loss recognized in Zurich's business operating profit, while over the full period to completion of the transfer of the policies the company expects to achieve an overall positive contribution to the business operating profit.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Munich Re appoints CEO for commercial insurance North America
Europe insurance stress test shows ‘high’ nat cat resilience: EIOPA
W.R. Berkley invests in AI firm Pypestream
BMS expands Bermuda operation with Price Forbes, JLT hires
GRP promotes Bruce to group MD
