Consolidator buys HSBC Reinsurance and HSBC Insurance (Ireland)

Bermuda-based run-off buyer Catalina has agreed to buy two run-off companies from banking group HSBC.

The acquisition of the companies, HSBC Reinsurance Limited and HSBC Insurance (Ireland) Limited, is subject to regulatory approval by the Central Bank of Ireland.

The companies will be renamed once the deal closes.

The businesses predominantly wrote creditor, property, travel and motor business. HSBC Reinsurance Limited was placed into run-off in June 2010 and HSBC Insurance (Ireland) Limited was placed into run-off in June 2009.

The two companies had total assets of approximately $273m at 31 March 2012.

Catalina chief executive Chris Fagan said: “This deal demonstrates Catalina’s continued ability to acquire legacy assets from high quality vendors in one of our core territories.

“We continue to see an increase in transaction activity in the run-off market, and we expect to build our portfolio further over the course of 2012.”