The acquisition will be Catalina’s first in Asia and is a strategic move to increase its exposure to the significant run-off market across the continent.
Re-insurer Catalina Holdings has agreed in principle to buy the entire stake in Asia Capital Reinsurance Group (ACR), the Bermuda-based firm announced in a press release on its website.
The acquisition is expected to close in the first half of 2020, subject to regulatory and all other approvals, the statement said. As part of the deal, ACR will cease writing business with immediate effect and all existing policies in force will be serviced until expiry.
The sale follows a failed takeover in 2017 by Shenzhen Qianhai Financial Holdings and Shenzhen Investment Holdings.
«Significant Opportunities»
«There are significant opportunities for further acquisitions in Asia, in what is a developing and growing run off market,» said Chris Fagan, chief executive, Catalina Holdings, who called the transaction «strategically important» as it gives the firm a platform to build an Asian portfolio and «complete [its] geographic footprint.»
ACR was formed in 2006 and has offices in Singapore, Japan, South Korea, Malaysia and Hong Kong. Its major shareholders include 3i Group, Khazanah Nasional, Temasek Holdings and Marubeni Corporation.
As of 30 September, ACR had $835 million of shareholder equity, $1.3 billion of gross liabilities including unearned premium reserve, and total assets of $2.1 billion, according to the company.
