Maiden Holdings, a Bermuda-based provider of specialty reinsurance products, has sold the renewal rights of its US treaty reinsurance underwriting business to global reinsurance firm Transatlantic Reinsurance (TransRe).
Image: Maiden offloads its US treaty reinsurance renewal rights to TransRe. Photo: Courtesy of rawpixel/Unsplash.
The deal, which has been completed, does not involve the Bermuda underwriting elements of Maiden, including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe.
TransRe has hired the US treaty team from Maiden as part of the deal including Tom Highet, a former president of Maiden Reinsurance North America (MRNA).
The reinsurance firm said that it will offer renewal quotations on the treaty book of business it has acquired, which is focused on regional property and casualty, accident and health and personal auto insurers.
TransRe North America president Ken Brandt said: “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.”
Maiden, on the other hand, said that the sale of its US renewal quotation rights is the start of the process of optimizing its operations.
The company further said that an expected restructuring and associated expense reductions along with the latest sale are likely to enhance its business performance and profitability while considerably cutting down the capital needed for its operations.
Maiden president and CEO designate Lawrence Metz said: “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.”
Maiden also revealed that it is in advanced talks regarding the sale of its wholly-owned subsidiary MRNA to a third party.
The Bermudan-registered company said that the deal would cover around $1.1bn of loss and loss adjustment expenses (LAE) reserves as of 30 June, 2018.