Buys out Helicon Re for $150m; terminates contract with Olympus Re
White Mountains Insurance Group has announced that White Mountains Re has acquired Helicon Re Holdings for approximately $150m.
Helicon Re Holdings, parent of Helicon Re, had GAAP shareholders' equity of approximately $153m as of November 30, 2007.
In 2006 and 2007, Helicon Re provided quota share retrocessional coverage to White Mountains Re.
White Mountains Re did not renew the quota share for 2008 and Helicon Re was put into run-off.
Allan Waters, CEO of White Mountains Re commented, "With the deteriorating market conditions in the property cat business, we no longer needed retrocessional capacity from Olympus Re and Helicon Re and terminated our contracts with them. Through this transaction, we are acquiring approximately $14m of unearned premiums and a strong balance sheet. We believe that the run-off of the reserves over the next few months will add value to White Mountains."