Bermuda-based Maiden Holdings has entered into an agreement to acquire most of the reinsurance-related infrastructure, assets and liabilities of UK-based GMAC International Insurance Services, including renewal rights on nearly $100m of predominantly personal auto quota share reinsurance as well as the supporting business development subsidiaries in Europe.
The transaction includes the assumption of more than $100m of loss reserves and net unearned premiums which will be funded by a transfer of cash and investments. GMAC International Insurance Services, primarily focuses on providing branded auto and auto-related insurance products through its insurer partners to retail customers in the European union and other global markets.
Art Raschbaum, president and CEO of Maiden Holdings, said: This transaction provides a significant step forward as Maiden continues to strengthen and enhance its international platform and capabilities while further diversifying its underwriting portfolio. We are very familiar with this unique low volatility, international reinsurance business.
”Not only are we gaining a highly-regarded team of professionals with a strong track record and a proven, successful and profitable business development platform, but the acquired business also includes unique, auto-related distribution networks. Beyond the profitable underwriting portfolio, these networks will provide a source of future fee income opportunities.
This opportunity is consistent with our disciplined, low volatility model and will allow us to further leverage our Bermuda underwriting platform. Once integrated, we expect the renewal portfolio to generate operating performance consistent with Maiden’s overall objectives. We are confident that our relationship-oriented, value-added focus will help us to further expand this strong platform and continue to make progress toward delivering on our stated profitability and return goals in 2011 and beyond.