Run-off acquirer Catalina Holdings (Bermuda) Ltd has signed a definitive share purchase agreement to buy PX Re from Tawa Associates Ltd.

As at June 30, 2014 PX Re had total assets of $30 million, according to Catalina, and undiscounted net liabilities of $9 million and statutory surplus of $21 million.

The total consideration for the acquisition is $11 million in cash taking into account a $3 million dividend that was paid after June 30, 2014.

The transaction is subject to approval by the Connecticut Department of Insurance.

The consideration will be satisfied from Catalina’s cash at hand.

Insurance Insider is reporting the deal said it is unclear whether the liabilities include potential payouts to shareholders, following a class action that began in 2008 over allegations that PX Re deliberately misrepresented its financial strength following losses from hurricanes Katrina, Rita and Wilma.

PX Re was put into run-off in 2006 and sold by Argo Group International Holdings Ltd to Tawa plc in 2008. Catalina has described it as a mature run-off with few liabilities remaining.

Catalina also noted that Tawa underwent a reorganisation last year, part of which resulted in some assets, including PX Re, being transferred from the listed entity to private organisation Tawa Associates Ltd.

Chris Fagan, chairman and chief executive officer of Catalina, was quoted as saying: “PX Re is now a small business which we can readily integrate with our operations in Hartford, Connecticut. We have reviewed this company with a view to acquiring it multiple times over several years so I am pleased we have now agreed to buy it.”

The acquisition takes the number of Catalina deals to five for 2014, and 16 since its inception.