Bermudian reinsurance firm RenaissanceRe is to make a minority shareholding investment in non-life insurance and reinsurance run-off and consolidation specialist Catalina Holdings.
RenaissanceRe will become a minority shareholder in Catalina, with the share investment being made through the reinsurers Ventures unit. Aditya Dutt, President of Renaissance Underwriting Managers, Ltd., will take a seat on the Catalina board of directors.
The investment is is still subject to regulatory approval and has been timed to close concurrently with the majority acquisition of Catalina by affiliates of private equity giant Apollo Global Management.
The investment from RenRe is expected to provide strategic benefits to Catalina a helping it to grow the business and to explore a wider range of transaction structures.
Chris Fagan, Chairman and Chief Executive of Catalina, commented, “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.”
Kevin O’Donnell, President and Chief Executive Officer of RenaissanceRe, added, “We are pleased to partner with Catalina as they have demonstrated a strong, consistent track record in managing legacy businesses. 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.”
Catalina has completed 24 transactions acquiring $5.6 billion of non-life insurance and reinsurance liabilities since its launch in 2005, and as at 30 September 2017 had total assets of $3.6 billion and shareholders’ equity of $719 million.