Asia Capital Reinsurance marks the first acquisition for Catalina in Asia, which has been taken up to grow its exposure to the significant run-off market across the region
Asia Capital Reinsurance acquired by Catalina. (Credit: Tumisu from Pixabay)
Catalina Holdings (Bermuda), a legacy (re)insurer, has wrapped up its previously announced acquisition of Asia Capital Reinsurance Group (ACR), a Singapore-based reinsurance business.
Financial terms of the deal were not disclosed.
The transaction was closed following the receipt of approval from the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM).
Asia Capital Reinsurance chairman Hsieh Fu Hua said: “I am very pleased with the speed and efficiency with which this transaction has been handled and would like to extend my appreciation to the former ACR management team, led by Bobby, for its significant contributions as well as professionalism during this ownership transition period. I look forward to working with my new colleagues at Catalina in Asia.”
The Bermuda-based Catalina said that the deal marks its first acquisition in Asia, which has been taken up to grow its exposure to the significant run-off market across the region.
At the time of signing the deal, Catalina said that it plans to use Asia Capital Reinsurance and Singapore as a hub to create a strong Asian run-off platform.
The Singaporean reinsurance business had stopped writing new business just prior to the signing of the deal in early December 2019. Catalina said that all existing policies in force will be honoured until their expiry.
Established in 2006, Asia Capital Reinsurance has offices in Singapore, Japan, South Korea, Hong Kong, and Malaysia. The company was acquired from various shareholders that included 3i Group, Temasek, Khazanah Nasional Berhad, and Marubeni.
Asia Capital Reinsurance’s reinsurance portfolio covers a variety of business lines that include property, motor, marine, engineering, agriculture, and aviation.
As of 30th September 2019, the company had $835m of shareholder equity, $1.3bn of gross liabilities, and total assets of $2.1bn.
On the other hand, Catalina had total assets of $7.2bn, prior to the acquisition of the Singapore-based reinsurance business.
Catalina chief executive comments on acquisition of Asia Capital Reinsurance
Catalina chairman and chief executive Chris Fagan said: “This is a significant transaction for Catalina, as it gives us a strong platform from which to grow our Asian business and increase exposure to a significant and growing run off market. I am pleased with the integration of ACR to date, and look forward to executing similar Asia-based transactions in due course.”