Catalina
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The executive joined the legacy carrier as CIO in 2020.
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The bids received did not meet the seller’s reserve price, and it is likely to remarket the unit in two to three years.
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The legacy carrier reported unrealised losses of more than $345mn for 2022, up from $78mn the year prior.
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The market has suffered from a glut of capital, and a number of structural features that make winning hard.
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Investment bank Macquarie has been retained to advise the legacy firm on the disposals.
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Dean Dwonczyk established Catalina in 2005 with former UK CEO Chris Fagan, who exited the business in February 2021.
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The legacy acquirer will reweight its portfolio towards life run-off, moving away from P&C deals which it deems less attractive, sources said.
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CEO Marc Rowan said P&C business is “not that attractive”.
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The executive – who is working with former colleague Mayur Patel – has retained JP Morgan to advise on the raise.
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Insurance Insider selects 10 exclusive news stories reported by our team on the frontline at Monte Carlo Rendez-Vous.
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The legacy carrier had already been engaging with managing agents ahead of the launch to scope out the opportunity for a starter RITC deal.
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The appointment comes after Catalina formed a new team, appointing former head of global distribution Steve Ryland to lead it.
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The legacy carrier had been an interested in acquiring the Coverys managing agency as a route to entry.
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Loh Wei-Lyn has been promoted to CEO of Asia, while Luann Petrellis has joined as US CEO.
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The legacy acquirer also struck a quota share deal for UK builders warranty insurance in 2021.
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Plus the lowdown on the potential Howden-TigerRisk tie-up and all the top news of the week.
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Catalina’s group head of distribution Steve Ryland will spearhead the new team.
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The sale process is in the early stages of marketing, and bids are expected later in May.
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The firm’s exposure to the Ukraine-Russia conflict, as well as a loss portfolio transfer, were confirmed in a performance update.
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Head of M&A Mayur Patel is leaving the legacy specialist, while its Asian CEO Martin Kauer is retiring.
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Interim chief Bruce Hemphill has returned to his role as non-executive chairman after 12 months of turnaround work at the legacy carrier.
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Charles Kasmer stepped down from his role as group chief actuary at Catalina in June 2021.
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Plus the latest impact of cat activity on reinsurer results and all the top news from the week.
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Insurance Insider takes a deep dive into the challenges facing the #2 run-off player following a regulatory probe, management turnover and a big 2020 loss.
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The business has seen an exodus of senior staff members in the past two years, including founding CEO Chris Fagan.
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Departures over the last 18 months include the CEO, CFO, COO and chief actuary.
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Michael Costonis will assume the new position of global head of marketing, strategy and innovation.
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The exit follows news earlier this year that founding CEO Chris Fagan was stepping down to be replaced by Bruce Hemphill.
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It is understood the book will be reinsured to close into Compre’s new legacy syndicate once the launch is approved.
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The move follows Axa LM's decision to cease bidding for new external deals, revealed in September last year.
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The legacy carrier also appoints Tony Cunningham and Fiona Walden following the departures of Aditya Dutt and Jacques Bonneau from the board.
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The new recruits join from Swiss Re and StarStone.
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Bruce Hemphill joined the board last year.
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The executive replaces Chris Fleming, who has been at Catalina since 2005.
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Its first transaction in the Asian market leaves the run-off group with assets totalling $7.2bn.
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The legacy carrier is understood to be looking for a replacement with public sector experience.
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The board strengthening follows Catalina's agreement last year to buy Asia Capital Re
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The agency will no longer rate the company following the deal.
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The live carrier will cease writing business with immediate effect and become a platform for the legacy acquirer's Asian run-off expansion.
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If the deal is finalised, the largest reinsurer in Singapore would go into run-off.
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Business was quietly placed up for sale with Credit Suisse advising in H1.
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The reinsurer's shares rose more than 9 percent on news of the board rejecting the offer.
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The legacy acquirer said the funding should accelerate research and improve patient outcomes.
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Premia and a consortium made up of Compre and Hudson Structured are understood to be the final two suitors.
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The executive joins after nearly a decade at the Bermuda carrier's legacy peer.
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Armour, Darag and Fortitude are among the parties linked with the process who are not in the second round.
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As activist investor Voce Capital Management becomes the carrier’s fourth-largest shareholder, this publication explores what incentive the investor has to push for a sale.
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The additional $700mn in equity committed by Apollo is a huge vote of confidence in Catalina and the legacy market.
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The extra committed equity provides the run-off acquirer with greater firepower for larger deals.
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The agreement for the casualty facultative reinsurance business comes after up-for-sale Maiden struck deals with Enstar and TransRe.
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The spike occurred after this publication reported Maiden’s board had retained Bank of America Merrill Lynch to run a formal sales process for the company.
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The run-off acquirer spent $5.73mn to increase its stake from 5 percent.
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The Bermuda reinsurance vehicle is set to co-invest alongside Catalina in major UK legacy deal with Zurich.
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The two parties are understood to be nearing an agreement on the sale of £1.6bn of Zurich’s legacy UK employers’ liability exposures.
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With the recent push from Lloyd’s to remediate the market’s ailing profitability, it’s widely expected that the legacy market will see greater reinsurance-to-close (RITC) deal flow in the months to come.
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Parri Spector has previously advised Catalina on various US transactions.
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The Apollo-backed legacy player is close to a deal to take on past liabilities of $1.1bn third-party book.
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Acra Re is expected to be used as a vehicle to co-invest alongside legacy business Catalina.
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Legacy deal talks with Maiden have stalled, leaving Catalina as a meaningful investor in a challenged business with a potentially highly volatile share price.
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If Catalina signs the deal, it will be the third UK employers' liability book it has acquired in just over two years.
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Berkshire Hathaway is understood to have shown early interest in the UK employers' liability book.
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Catalina today announced it had assumed a portfolio of run-off US P&C liabilities from Arch Re, with net outstanding reserves of about $410mn.
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The legacy sector has seen surging deal volumes of late, but the major inflows of capital into the space look set to choke off returns, with the live market’s depressed returns a cautionary tale for run-off acquirers.