Bermudian run-off specialist Catalina Holdings Ltd has agreed to buy the UK operations of Hartford Financial Services Group.

The businesses come with assets of more than $1 billion and carry risks tied to asbestos and environmental insurance policies issued more than 20 years ago.

Catalina, which has shareholders’ equity of $533 million and assets of more $5 billion, according to its website, has built its business on acquiring the assets of insurance companies in run-off and winding down the liabilities that come with them.

The units, Downlands Liability Management and Hartford Financial Products International, had shareholders’ equity of about $321 million as of March 31, the seller said in a statement yesterday.

“HFPI is a large and well diversified business, the majority of which has been in run-off since 1993,” Chris Fagan, Catalina’s chief executive officer, said in the statement.

“It is managed by a professional and experienced team at DLM who will strengthen the breadth and diversity of Catalina’s UK business.”

The units being sold to Catalina will remain in Worthing, Britain, complete with their exiting employees, according to the statement, which did not disclose terms.

“We are pleased to announce this agreement, which is a good opportunity to permanently transfer our property and casualty run-off exposures in the UK,” said The Hartford’s chief financial officer Beth Bombara. “Catalina is a well-respected organisation that specialises in the consolidation of insurance and reinsurance liabilities in run-off.”