Catalina To Acquire AGF Insurance From Allianz

March 30, 2016

Catalina Holdings [Bermuda] Ltd announced that its wholly owned subsidiary Catalina Holdings UK Limited has signed a definitive agreement to acquire AGF Insurance Limited from AGF Holdings [UK] Limited, a subsidiary of Allianz SE.

AGF is a UK regulated insurance company incorporated in 1960. It wrote predominantly direct Employers and Public liability insurance in the UK. It ceased writing new business and went into run-off in 1999. At 31 December 2015 AGF had total assets of £270m [US$389m], undiscounted gross reserves of £185m [US$266m], and pro-forma shareholder equity of £79m [US$113m].

Catalina will acquire AGF from available resources. Total assets of Catalina as at 31 December 2015 pro forma for this acquisition were $3.2bn. The transaction, which is expected to close in Q3 this year, is subject to approval by the Prudential Regulation Authority, the UK insurance regulator.

Chris Fagan, Chairman and Chief Executive of Catalina, said: “AGF will be Catalina’s first significant acquisition of UK Employers Liability legacy risk. We have been developing our expertise in this class of business over several years and retain an appetite to acquire more of this class and related legacy risk.

“Catalina’s business model combines active asset and liability management with low operating costs and a competitive cost of capital. This is attracting an increasing number of portfolios and acquisition in Europe and the US as re-insurers seek to release capital or improve the efficiency of their legacy liabilities. Solvency II has had an increasing impact in the build up to its implementation in January this year,” the company said.

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