The transaction between the two Bermudian firms will close alongside majority acquisition of Catalina by Apollo Global Management
RenaissanceRe has acquired a minority stake in run-off specialist Catalina Holdings, according to today’s announcement.
The transaction will see RenaissanceRe become a minority shareholder in Catalina, joining Apollo and its affiliates who signed a definitive agreement to acquire a majority shareholding in October 2017.
Catalina chief executive and chairman Chris Fagan said: “We’re delighted to welcome RenaissanceRe as shareholders in Catalina. They join us at time of significant opportunity to help us capitalize on the continued growth of the non-life legacy sector.”
According to announcements from the two Bermudian firms, RenaissanceRe’s investment will provide strategic benefits to Catalina and help the business to explore a wider range of transaction structures.
Catalina has completed 24 transactions since being founded in 2005, acquiring $5.6bn of non-life insurance and reinsurance liabilities, and as at 30 September 2017 had total assets of $3.6bn and shareholders’ equity of $719m.
RenaissanceRe chief executive Kevin O’Donnell said: “We are pleased to partner with Catalina as they have demonstrated a strong, consistent track record in managing legacy businesses.”
He added: ”This transaction is consistent with our strategy to expand the suite of capabilities at our disposal to bring to our clients, through partnership with a proven industry leader. We look forward to working with the Catalina team on new opportunities.”