Bermuda run-off acquirers, Catalina are buying SPARTA Insurance and intend to enter part of its business into run-off and to sell its alternative market business to Arch Insurance.
Catalina will acquire Sparta from cash at hand and a senior debt facility. The transaction, which is subject to regulatory approval, is expected to close in the third quarter of 2014.
The transaction will be Catalina’s twelfth since it was established in 2005.
Commenting on the transaction, Chris Fagan, chairman and CEO of Catalina, says “The acquisition of Sparta adds significantly to our operations in the North East of the US, and follows quickly after our recent acquisition of Alea North America.”
“Catalina will be gaining talented people with this transaction who will be able to help with our operations across the US. I am also pleased that a renewal rights agreement has been struck with Arch Insurance Company, under which some staff will continue writing the alternative markets business.”
Catalina, SPARTA, acquisition, Bermuda, insurance, Arch