Apollo to acquire Catalina Holdings

Bermuda-based run-off firm Catalina Holdings said on Oct. 17 that private equity firm Apollo Global Management has signed a definitive agreement to acquire a majority shareholding in the company.

Catalina Holdings is a long-term consolidator in the non-life re/insurance run-off sector and was established in 2005.

Since its foundation, Catalina has acquired or reinsured over $4.5 billion of non-life insurance and reinsurance liabilities, according to the statement. Catalina has received approvals from Bermudian, Irish, Swiss, UK (FSA/PRA and Lloyd’s) and various US state insurance regulators for prior acquisitions and reinsurance transactions. Catalina maintains offices in Bermuda, Denver, Dublin, Hartford, London, New York and Pfaffikon, Switzerland, with approximately 180 employees. Catalina had total assets of $3.6 billion and shareholders’ equity of $700 million as of June 30, 2017.

Affiliates of Apollo made an initial investment in Catalina in December 2013 and, as a result of the latest transaction, the Apollo acquisition vehicle, which is expected to include investment from certain long-term institutional and strategic investors, will have a controlling interest in the business.

The existing management team led by founders Chris Fagan and Dean Dwonczyk will continue to run the business and maintain a significant shareholding.

Catalina CEO Chris Fagan said: “We’re delighted that Apollo, and the long-term institutional shareholders supporting it, are increasing their shareholding in Catalina. They are doing so at a time of significant change in the non-life insurance legacy sector which is developing faster now than at any point over the last 15 years. Catalina is one of the leading consolidators in the non-life run-off sector and together with our new shareholders, we believe the company is ideally positioned to continue our strong growth and development.”

Gernot Lohr, senior partner at Apollo Global Management added: “We fully support the outstanding management team at Catalina and are excited about the opportunity to deepen our relationship with the business. Whilst already significant, the market for non-life legacy acquisitions continues to grow, and we believe Catalina is well positioned to capitalize on these opportunities due to its deep industry expertise as evidenced by its successful track record. We look forward to working with Catalina during the next phase of its growth and development.”

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Other stories from this morning's newsletter

XL Group takes stake in India’s Mahindra

Aspen expects $340m underwriting loss in Q3 due to hurricanes

AmWINS acquires 15 Willis insurance programmes

Aviva reveals major annuity deal

Standard Syndicate 1884 hires reinsurance head from Lloyd's

California wildfire destroys 5,700 structures

ICA appoints new chair of Australian Securities and Investments Commission

Don't miss our insurtech email newsletter - sign up today