Runoff specialist Catalina to buy American Safety Re
Reprints
Runoff specialist Catalina Holdings (Bermuda) Ltd. will acquire American Safety Reinsurance Ltd. from Tower Group International Ltd., Catalina announced Monday.
American Safety Re is the Hamilton, Bermuda-based casualty reinsurance subsidiary of American Safety Insurance Holdings Ltd., which is in the process of being acquired by Toronto-based Fairfax Financial Holdings Ltd.
In June, Fairfax announced it would buy American Safety and, on completion of that deal, sell American Safety Re to Tower for $59 million.
Catalina now will assume Tower's rights and obligations to American Safety Re under a definitive share purchase agreement, it said Monday.
Catalina, which previously had been bidding to acquire American Safety, has withdrawn that offer, it said, and will vote its shares in American Safety in favor of acquisition by Fairfax.
“We expressed strong interest in acquiring American Safety but it became clear to us that a better option for all was to enter into the agreement with Fairfax to acquire AS Re,” Chris Fagan, chairman and CEO of Catalina, said in the statement. “We are delighted to have secured an agreement with Fairfax to acquire AS Re, which can be quickly and efficiently combined with our existing operations in Bermuda.”
The deal is subject to regulatory approval.
AS Re underwrites casualty reinsurance lines including medical malpractice; directors and officers liability; errors and omissions; environmental liability; general liability; workers compensation; umbrella and excess liability; auto liability; and personal lines.
