The multi-million dollar Bermuda company that specialises in buying up insurance business from companies in run-off, Castlewood Group, has expanded into the UK by buying out a reinsurance company with $169 million of assets.

Castlewood, which is based in Reid Street, Hamilton, has just bought the Toa-Re Insurance Co. (UK) Ltd., which is a London based subsidiary of the Toa Reinsurance Co. Ltd., a large Japanese reinsurance company, and renamed it Hillcot Re.

Castlewood, which was started in Bermuda in 1993 and specialises in the management and acquisition of insurance and reinsurance companies including companies in run-off, made the acquisition in partnership with Shinsei Bank, one of the largest banks in Japan and the largest private bank in the world with over $100 billion in assets. "We are continually looking at new business and expansion into new areas," said Paul O'Shea, president and chief operating officer of Castlewood. "And this was a great opportunity for us.

"We are in the problem solving and run off business and, without wanting to blow our own trumpet too much, there is no other company with the expansion rate or success rate in this field as we have."

Castlewood also provides management, consulting, inspection, claims broking and other services to the insurance and reinsurance industry.

Mr. O'Shea said: "Since we established in Bermuda, we have become one of the pre-eminent run-off businesses in the world. If there is a business going into run off, we will certainly get a call to find out if we are interested.

"There are very few companies out there and Castlewood is now looked at as one of the leading companies."

As of December 31, 2002, shareholder equity of Castlewood was $165 million and the company had total assets in excess of $500 million.

"The acquisition of Toa Re will lead to further expansion in Castlewood's Bermuda and UK offices.

Castlewood are particularly excited about this acquisition as it represents a significant introduction to the Japanese market.

It is also the first project undertaken by Shinsei with a Bermuda based partner," added Mr. O'Shea

Mr. O'Shea also added that Castlewood had sold its captive management division in a bid to concentrate on its core business.

Formerly known as Castlewood Risk Management Ltd (CRML) to the current management, the company has been bought out by one of Castlewood's former employers Andrew McComb. The company has been renamed Allegro Insurance & Risk Management Ltd.

"We wish Andy all the success in this new venture," said Mr. O'Shea.

"The deal is of mutual benefit. We are in the problem solving and run off business - and this was a very small part of the business.

"It is a good and vibrant business and it has been taken over by someone with a great depth of knowledge in the captive management area."

Mr. O'Shea said Castlewood will continue to expand its management and acquisition of insurance and reinsurance companies and the provision of management, consulting, inspection, claims broking and other services to the insurance and reinsurance industry on a worldwide basis from its Bermuda headquarters.