Bermudian (re)insurer RenaissanceRe has agreed to make a minority investment in run-off specialist Catalina.
RenaissanceRe will become a minority shareholder in Catalina, with the share investment being made through the reinsurer’s ventures unit. The deal comes after it was announced in October last year that global investment firm Apollo had agreed to acquire a majority shareholding in Catalina.
Following completion of the transaction, Aditya Dutt, president of Renaissance Underwriting Managers will join the Catalina board of directors.
RenaissanceRe’s investment will provide strategic benefits to Catalina and help the business to explore a broader range of transaction structures as it continues with its growth strategy that has seen the business grow steadily and consistently over a number of years.
Catalina chief executive 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.
“Together with Apollo, our new shareholders provide us with access to additional expertise and substantial financial resources that will help us to take advantage of the vast array of legacy market opportunities we continue to see, driving our business through the next phase of its growth, and strengthening our position as one of the legacy market’s leading consolidators.”
RenaissanceRe president and CEO Kevin O’Donnell remarked: “We are pleased to partner with Catalina as they have demonstrated a strong, consistent track record in managing legacy businesses. 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.”
Since being founded in 2005, Catalina has completed 24 transactions, acquiring $5.6bn of non-life insurance and reinsurance liabilities. It had total assets of $3.6bn and shareholders’ equity of $719mn as of 30 September 2017.
The deal expected to close concurrently with Apollo’s previously announced majority investment in the firm, subject to regulatory approval.