Catalina buys insurance and reinsurance companies and portfolios in run-off.
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:
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.
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.
Catalina acquires from its own funds at hand and can commit to transactions from its own funds but also uses bank facilities.
Very quickly. Subject to the provision of basic financial data, including recent actuarial reserving studies and detail of assets.
Yes, Catalina has a sophisticated investment management team that can analyze and consider any liquid assets that are acceptable in the relevant regulatory environment.
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.
Generally yes, and Catalina has a successful and established history of working through the regulatory consent process in all major insurance jurisdictions.
Yes but only as a prelude to acquiring the business.
Yes it is an area where we have significant focus and are willing to advise vendors on options and solutions.