Compre acquires medmal liability portfolio
Compre, the international legacy group headquartered in Bermuda, has acquired the hospital liability portfolio of German insurer Basler Sachversicherungs-AG, an entity of the Baloise Group.
The acquisition is subject to regulatory approval by the German Federal Financial Supervisory Authority. Terms of the transaction are not disclosed.
The deal, structured as a portfolio transfer, is a further milestone for Compre, marking its ambition to build a centre of excellence for legacy medmal business in Europe, the company said.
The portfolio consists mainly of underwriting years 2004 to 2018 and as such has been in run-off for several years. The transaction, which is expected to close by year end, includes the hospital liability portfolio of Basler with technical liabilities of approximately €200 million.
Subject to the relevant regulatory approvals, the portfolio will transfer in its entirety to Compre’s Finnish subsidiary, Bothnia International Insurance Company Ltd.
Compre will work closely with Detmold-based Ecclesia Group Assekuranz Service GmbH, which will continue to provide claims support for existing customers, ensuring smooth continuity of service for policyholders.
In addition, Compre also recently completed a two-tranche loss portfolio transfer for an undisclosed European insurer, with the second tranche covering unexpired risks on a predetermined basis.
This is the first time Compre has underwritten a two-tranche LPT and is developing its prepackaged forward LPT proposition to deliver additional future income, while providing greater certainty for its clients’ future results.
Will Bridger, group CEO, said: “I am delighted to announce our first acquisition of pure European medmal legacy liabilities and with a portfolio that is very well known to us. This demonstrates Compre’s strong client-service focus and ability to provide highly tailored solutions to meet specific client needs.”
Simon Hawkins, CEO Europe, added: “This transaction also demonstrates, after Compre recently redomiciled to Bermuda, our commitment to executing legacy deals in Europe as well as the Lloyd’s and US legacy markets.
“While this is a new class of business for Compre, it is very much a signal of our intent to build medmal into a significant additional area of specialisation."
Compre is a leading legacy specialist with more than 30 years of experience in the acquisition and management of discontinued and legacy non-life insurance and reinsurance business.
The company has experience of acquiring most classes of direct and reinsurance business, including general liability, marine and motor liability, and US APH.
Compre has operations in Bermuda, Finland, Germany, Malta, Switzerland, Britain, the United States and at Lloyd’s of London.