Run-off buyer Catalina Holdings has agreed to buy Residential Loss Control Holdings (RLCH) for an undisclosed sum.
RLCH owns two risk retention groups - National Home Insurance Company (NHIC) and Residential Insurance Company (RIC) – which were put into run-off in August 2010. NHIC is based in Colorado, while RIC is based in Hawaii.
As at 30 June 2011, RLCH had total assets of $168.4 million, gross technical reserves of $113.7 million and net assets of $19.4 million. While Catalina did not disclose how much it paid for RLCH, it said the purchase price was at a discount to RLCH’s net asset value.
“RLCH and its management team is well known to Catalina as we are a reinsurer to NHIC and familiar with the business,” said Catalina chief executive Chris Fagan in a statement. “The acquisition is a good addition to our existing US business.”
He added: “We continue to be very acquisitive, and we are seeing an increased flow of run-off acquisition opportunities.”
The deal is expected to close in the fourth quarter of 2011, subject to regulatory approval from the Colorado and Hawaii departments of insurance.
Catalina, established in 2005, owns the run-off portfolios of Quanta, Alea UK, Western General Insurance and Glacier Re.