Life reinsurance and insurance holding company Monument Re is reportedly “exploring strategic options” which include a potential sale, after seeing a drop in its capital ratios last year, according to a new report by Reuters.
Citigroup and Fenchurch Advisory are working with the company and its owners on the options, people familiar with the matter reputedly told Reuters.
One of the people, who declined to be named “because the discussions are private”, said that Monument Re has a fragmented ownership structure with several institutional and individual shareholders, including Enstar Group, Hannover Re and Caspar Berendsen, a partner at private equity house Cinven.
Monument Re reported a solvency ratio of 167% last year, above its minimum regulatory requirement.
Reuters said the firm attributed the decline to changes in solvency valuation methodology and a €202 million payout aimed at reducing group debt.
“While profit after tax remained relatively stable, the company also reported unrealised losses on its investment portfolio of more than 1.2 billion euros in 2022, mirroring other financial institutions that have seen the value of their investments fall as a result of soaring interest rates,” Reuters added.
Turning to some recent business, Monument Re announced earlier this month that its Belgian subsidiary, Monument Assurance Belgium, had completed the acquisition of a run-off block of retail life policies, annuities and associated assets from Federale Verzekering.
Meanwhile, in May, Monument Re disclosed that its Luxembourg subsidiary Monument Assurance Luxembourg S.A., had reached an agreement with Integrale Luxembourg to acquire its closed book portfolio of long-term life insurance business.
