Catalina Holdings, a Bermuda-based re/insurer, has released its 2014/15 financial results.
The re/insurer’s profits have increased by 36 percent in operating profit to $77.5 million in the second quarter of 2015, partly due to mergers and acquisitions (M&A) activity.
The business announced and closed two acquisitions during the year of 2015, Allianz Suisse Re in Switzerland and the loss portfolio transfer of the Quinn business in Ireland.
“Catalina’s business model is to acquire non-life insurance and re-insurance companies and portfolios in run-off,” the report said.
“We employed 140 people in 9 offices in 2015 and we expect that to rise to 200 over the course of 2016. We actively target key staff in acquisitions seeking to retain and motivate them, providing them with long term career opportunities which do not exist in most run-off companies.”
The re/insurer’s net income increased to $57.2 million in 2015, compared with $43.3 million in 2014.
In 2015 Catalina’s net run-off income increased to $83.3 million, compared with $51.4 million in 2014.
“Over time we have generated around half of our income from the liability side of our balance sheet and half from the asset side,” said Chris Fagan, chief executive officer (CEO) of Catalina, in the report.
“In 2015, that was skewed to the liability side with net run-off income rising 62 percent to $83.3 million. Net investment income was lower in 2015 at $32.5 million which represented a return of 1.8 percent on average invested assets, compared to 3.7 percent in 2014, and an annualised return of 4.9 percent in the first six months of 2016. General and administrative expenses were broadly flat on 2014 resulting in a 36 percent increase in operating profit to $77.5 million."
“We continue to see multiple transactions across the globe and our M&A, actuarial, claims and diligence teams remain as busy as they have ever been reviewing new opportunities."
Catalina Holdings, Bermuda, Insurance, Reinsurance, M&A, Europe, Run-off, Results, Chris Fagan, Allianz Suisse Re, Quinn