Catalina to acquire Residential Loss Control Holdings – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

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Catalina to acquire Residential Loss Control Holdings

Catalina Holdings (Bermuda) Ltd has announced that its wholly-owned subsidiary, Catalina Echo Ltd, signed a definitive merger agreement on August 22, 2011 to acquire Residential Loss Control Holdings, LLC (RLCH).

Catalina specialises in offering “finality and immediate capital release” to owners of re/insurancecompanies and portfolios that are in run-off.

Catalina said that RLCH “owns two risk retention groups, National Home Insurance Company (NHIC) and Residential Insurance Company (RIC), based respectively in Colorado and Hawaii.

“NHIC and RIC underwrote new home warranty businesses until they were placed into run-off in August 2010. As at June 30, 2011, and as adjusted for a pre closing dividend, RLCH had total assets of $168.4 million, gross technical reserves of $113.7 million and net assets of $19.4 million. The purchase price was at a discount to net asset value.”

The acquisition is subject to regulatory approval from the Colorado and Hawaii Departments of Insurance. It is expected to close in the fourth quarter of 2011.

Chris Fagan, chairman and chief executive of Catalina, said: “RLCH and its management team is well known to Catalina as we are a reinsurer to NHIC and familiar with the business. The acquisition is a good addition to our existing US business.

“We continue to be very acquisitive, and we are seeing an increased flow of run-off acquisition opportunities.”

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Published August 29, 2011 at 10:00 am (Updated August 28, 2011 at 7:36 pm)

Catalina to acquire Residential Loss Control Holdings

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