Bermuda-headquartered Maiden Holdings has announced the sale of its U.S treaty reinsurance underwriting business renewal rights to TransRe, in a deal that does not include its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe.
Concurrently, to ensure a successful transition for customers and brokers, Tom Highet, previously President of Maiden Reinsurance North America, and a team of underwriters, actuaries and claims personnel will join TransRe and operate from new offices in Mt Laurel, New Jersey.
“We believe that TransRe offers our customers an ideal fit for continuity of approach, appetite and service going forward,” said Highet.
“With TransRe’s A+ balance sheet, additional product range and great underwriting culture, we look forward to maintaining and strengthening our customer and broker relationships,” he added.
Highet, who served with Maiden Re and its previous incarnation for 30 years, has been appointed Executive Vice President and will report to Ken Brandt, President of TransRe North America.
“We are delighted to welcome Maiden’s accomplished team and believe the move to be an excellent strategic and cultural fit for customers and us,” said Brandt.
TransRe will immediately offer renewal quotations on this treaty book of business, which is focused on regional property and casualty (P&C), accident and health and personal auto insurers.
“The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and we believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability and broaden our ability to allocate capital to future strategies, which in turn will create value for our shareholders.
“We are deeply grateful to the Maiden team for their continued efforts in this challenging environment and, prospectively, we will coordinate closely with clients to ensure a smooth transition,” said Lawrence Metz, Maiden’s President and Chief Executive Officer (CEO) designate.
The firm explains that the completion of the sale of the renewal rights is the start of its process of simplifying its operations, which is ultimately expected to improve both its business performance and profitability.
Furthermore, Marine Holdings has confirmed that it is in advanced discussions regarding the sale of its subsidiary Maiden Reinsurance North America (MRNA) to a third party.
The transaction would cover approximately $1.1 billion of loss and Loss Adjustment Expense (LAE) reserves as of June 30, 2018. The reinsurance business had been hit with a ratings downgrade by A.M. Best earlier this year.