Private equity firm Apollo Global Management has signed a definitive agreement to acquires a majority shareholding in Catalina Holdings, a Bermuda-based run-off firm.
Catalina has acquired or reinsured over $4.5 billion of non-life insurance reinsurance liabilities since it was established in 2005.
Catalina has received approvals from Bermudian, Irish, Swiss, UK (FSA/PRA and Lloyd’s) and various US state insurance regulators for prior acquisitions and reinsurance transactions.
The run-off firm maintains offices in Bermuda, Denver, Dublin, Hartford, London, New York and Pfaffikon, Switzerland, with approximately 180 employees. Catalina had total assets of $3.6 billion and shareholders’ equity of $700 million as of June 30, 2017.
Affiliates of Apollo made an initial investment in Catalina in December 2013 and, as a result of the latest transaction, the Apollo acquisition vehicle, which is expected to include investment from certain long-term institutional and strategic investors, will have a controlling interest in the business.
The existing management team led by founders Chris Fagan and Dean Dwonczyk will continue to run the business and maintain a significant shareholding.
Catalina CEO Chris Fagan said: “We’re delighted that Apollo, and the long-term institutional shareholders supporting it, are increasing their shareholding in Catalina. They are doing so at a time of significant change in the non-life insurance legacy sector which is developing faster now than at any point over the last 15 years. Catalina is one of the leading consolidators in the non-life run-off sector and together with our new shareholders, we believe the company is ideally positioned to continue our strong growth and development.”
Gernot Lohr, senior partner at Apollo Global Management added: “We fully support the outstanding management team at Catalina and are excited about the opportunity to deepen our relationship with the business. Whilst already significant, the market for non-life legacy acquisitions continues to grow, and we believe Catalina is well positioned to capitalise on these opportunities due to its deep industry expertise as evidenced by its successful track record. We look forward to working with Catalina during the next phase of its growth and development.”
Catalina Holdings, Apollo Global Management, M&A, Bermuda