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.”