Crosswinds Holdings Inc. has announced that it is to distribute all of its available capital to shareholders and dissolve the company, which would also result in its reinsurance subsidiary, Crosswinds Re, being dissolved.
Via an update on its previously disclosed assessment of strategic alternatives, Crosswinds has announced that its Board has unanimously resolved that it’s in the best interest of the firm to distribute all of its available capital to shareholders and dissolve the company.
Furthermore, after determining that reinsurance opportunities for the 2018 wind season failed to meet its risk-return criteria, Crosswinds Re, the company’s wholly owned subsidiary, will also be dissolved, so long as the monetisation event is approved.
The announcement explains that the company will continue to look at alternative opportunities that might present themselves during the process.
The firm explains that it plans to hold a special shareholder meeting in Q3 2018 to seek approval for the monetisation event, adding that there can be no assurance that it will receive shareholder approval.
With the majority of the firm’s assets now in cash, its Board of Directors started looking at available investment opportunities against other strategic alternatives, and appears to have resolved that it is in the best interest of the firm to dissolve.
In November last year, Crosswinds announced that its subsidiary, Crosswinds Investor Monarch (CIML), had entered into an agreement to sell all of its Monarch Delaware interests to its joint venture partner, Federated National.
Prior to this, Crosswinds entered into an underwriting services agreement with Transatlantic Reinsurance Company (TransRe), which saw the latter act as a strategic advisor for Crosswinds Re’s reinsurance operations.
