RenRe subsidiary buys minority stake in Catalina


RenaissanceRe subsidiary RenaissanceRe Ventures is to buy a minority stake in Bermuda-based Catalina Holdings.

The two companies have signed a definitive agreement for the purchase, which is subject to regulatory approval and is expected to close concurrently with the majority acquisition of Catalina by affiliates of Apollo Global Management.

Apollo and its affiliates signed a definitive agreement to acquire a majority shareholding in Catalina in October 2017.

Under the terms of the agreement Aditya Dutt, President of Renaissance Underwriting Managers, will join the Catalina board of directors.

RenaissanceRe said that its investment will provide strategic benefits to Catalina and help the business to explore a wider range of transaction structures as it continues to execute its growth strategy that has seen the business grow steadily and consistently over many years.

"We are pleased to partner with Catalina as they have demonstrated a strong, consistent track record in managing legacy businesses,” said Kevin O'Donnell, president and chief executive officer of RenaissanceRe. “This transaction is consistent with our strategy to expand the suite of capabilities at our disposal to bring to our clients, through partnership with a proven industry leader. We look forward to working with the Catalina team on new opportunities."

Chris Fagan, chairman and chief executive of Catalina, said: "We're delighted to welcome RenaissanceRe as shareholders in Catalina. They join us at time of significant opportunity to help us capitalize on the continued growth of the non-life legacy sector.

"Together with Apollo, our new shareholders provide us with access to additional expertise and substantial financial resources that will help us to take advantage of the vast array of legacy market opportunities we continue to see, driving our business through the next phase of its growth, and strengthening our position as one of the legacy market's leading consolidators."

RenaissanceRe, Acquisition, M&A, Catalina, Runoff, Reinsurance, Insurance, Bermuda

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