Bermuda-based Catalina Holdings has agreed to acquire run-off vehicle KX Reinsurance Company Ltd from Tawa plc in a deal worth at least $28 million.This is Catalina’s second acquisition announcement in the third quarter after it agreed to buy the Ireland-based insurance and reinsurance businesses of HSBC Europe in July.Catalina CEO Chris Fagan revealed that the company expects to complete more acquisitions before the end of this year.Founded in Bermuda in 2005, Catalina acquires and manages companies and insurance portfolios that are in run-off, meaning they have ceased writing new business but continue to exist to meet any future obligations.The announcement of the deal stated that KX Re’s consolidated total assets were $114 million, and undiscounted gross liabilities were $69 million.The share purchase agreement will involve Catalina paying at least $28 million in cash for 100 percent of KX Re’s shares, and the consideration could reach $30 million, depending on financial performance of KX Re between now and completion.The completion of the transaction is conditional on receiving approval to the change of control from UK financial regulator the Financial Services Authority. Approval is expected by the end of 2012.KX Re was put into run-off in 1992 and sold by CNA Financial Corporation to Tawa in 2007. It is a mature run-off with a wide variety of exposures, predominantly in the US, where the majority of risks relate to 1985 and before.The deal includes KX Re’s wholly owned subsidiary OX Re, which was acquired by Tawa in March 2011, and was formerly Oslo Reinsurance Company (UK) Ltd.“KX Re is an interesting acquisition for Catalina because it gives us exposure to US asbestos liabilities, an area in which our reserves have traditionally been very light,” said Mr Fagan.“We have been focused on improving our knowledge of US asbestos liabilities over the last few years and are pleased to develop our business in this area.“KX Re is our second acquisition in this quarter, and we are in negotiations on a number of other attractive opportunities some of which we expect to conclude and announce this year.”