Catalina Holdings (Bermuda) has entered into an agreement with Covanta Holdings to acquire Danielson Indemnity, for an undisclosed sum.
Danielson Indemnity is the insurance holding company of National American Insurance Company of California (NAICC) and Danielson National Insurance Company (DNIC).
Catalina said that it will acquire Danielson using cash at hand, which had total assets of $62m, gross reserves of $39m and shareholder equity of $18m, as of 30 June 2014.
Catalina Holdings chairman and chief executive Chris Fagan said the transaction is a small one for both the companies.
"It provides Covanta with a clean exit from the insurance business and adds the expertise of the team in Long Beach to Catalina’s operations in North America," Fagan added.
Subject to approval by the California Department of Insurance, the transaction is expected to be completed in the fourth quarter of this year.
The current deal is the fourth one for Catalina in 2014, and represents its 15th transaction since the business was established in 2005.
The firm’s assets are expected to be around $3.1bn, following this acquisition.
Catalina Holdings is a long-term consolidator in the non-life insurance/reinsurance run-off sector, and has offices in Bermuda, Colorado, Connecticut, Dublin, London, New York and Switzerland.
The company’s shareholders comprise financial institutions, including funds managed by Apollo Global Management, Ontario Teachers’ Pension Plan and Caisse de Depot et Placement du Quebec.
Image: Catalina to acquire Danielson Indemnity. Photo: courtesy of PinkBlue/ FreeDigitalPhotos.net.