What does Catalina do?

Catalina buys insurance and reinsurance companies and portfolios in run-off.

Why does a seller trade with Catalina?

Sale of a company to Catalina with legacy liabilities provides the seller with a combination of finality from reserving deterioration and immediate capital release. This can have multiple benefits:

  • Immediate capital injection from sale consideration to redeploy in other areas of business or return to shareholders
  • Re-focus of management attention to core business
  • Because we keep our word and deliver the transaction we have promised

Can Catalina really help with capital release?

The average price paid for our acquisitions is well in excess of $100 million and we are very happy to look at acquisitions with consideration up to $1 billion.

Why not just keep it and run-it off ourselves?

You can but there is a positive arbitrage from a sale to Catalina which is reflected in the sale price. Catalina operates off a low expense base and is focused on accelerating liability run-off using commutations and other techniques which speed up the process of subsequent capital release. Catalina also structures each acquisition for maximum capital efficiency.

Does Catalina only acquire companies or can liabilities also be transferred as portfolios or reinsurance transactions?

Catalina has balance sheets in Bermuda, Switzerland, the US and the UK and can arrange for the portfolio transfer of liabilities where that structure is more efficient, practical or suits a sellers needs.

Does Catalina fund from its own financial resources or does it have to go and find the money?

Catalina acquires from its own funds at hand and can commit to transactions from its own funds but also uses bank facilities.

How quickly can Catalina give an indicative price on an acquisition?

Very quickly. Subject to the provision of basic financial data, including recent actuarial reserving studies and detail of assets.

Will Catalina take assets other than cash and government securities in support of liabilities?

Yes, Catalina has a sophisticated investment management team that can analyze and consider any liquid assets that are acceptable in the relevant regulatory environment.

Is Catalina's business regulated?

Yes, in multiple jurisdictions, with the Bermuda Monetary Authority being our sole regulator. We are regulated by the FINMA in Switzerland, various State Departments in the US and by the PRA in the UK.

Is regulatory consent required for a company sale?

Generally yes, and Catalina has a successful and established history of working through the regulatory consent process in all major insurance jurisdictions.

Does Catalina manage liabilities for other companies?

Yes but only as a prelude to acquiring the business.

Does Catalina buy captives?

Yes it is an area where we have significant focus and are willing to advise vendors on options and solutions.