Bermuda-based Catalina Holdings (Bermuda) has acquired US reinsurer PXRE Reinsurance Company.
The company was acquired from Tawa Associates for $11 million, taking in to account a $3 million dividend that was paid post June 30, 2014.
PXRE is a mature run-off with few liabilities remaining. It was put into run-off in 2006 and sold by Argo Group to Tawa in 2008.
As at 30 June 2014, PXRE had total assets of $30 million, undiscounted net liabilities of $9 million, and statutory surplus of $21 million.
The total consideration for the acquisition is $11m in cash taking into account a $3m dividend that was paid post 30 June 2014. The transaction is subject to approval by the Connecticut Department of Insurance.
Chris Fagan, chairman and chief executive of Catalina, said: “PX Re is now a small business which we can readily integrate with our operations in Hartford CT. We have reviewed this company with a view to acquiring it multiple times over several years so I am pleased we have now agreed to buy it. 2014 has been an active year for Catalina with PX Re being our fifth transaction this year, and sixteenth in total.”
Catalina Holdings, PXRE Reinsurance Company, Bermuda, Tawa
