Bermuda-based run-off specialist Catalina has signed an agreement to acquire Danielson Indemnity Company, the holding company of two Californian insurers, from Covanta.
Catalina will acquire National American Insurance Company of California and Danielson National Insurance Company.
The transaction is expected to close in the fourth quarter of 2014.
At 30 June 2014, Danielson had total assets of $62 million, gross reserves of $39 million, and shareholder equity of $18 million. Catalina will acquire Danielson Indemnity from cash at hand.
This is Catalina’s fourth transaction of 2014 and 15th since the business was established in 2005.
Catalina said its total assets following this acquisition will be in excess of $3.1 billion.
Chris Fagan, chairman and chief executive of Catalina, said: “This is a small transaction for both Catalina and Covanta. It provides Covanta with a clean exit from the insurance business and adds the expertise of the team in Long Beach to Catalina’s operations in North America.”