<article>Bermuda-based reinsurance major <a href="https://www.dealstreetasia.com/stories/Catalina-Holdings/">Catalina Holdings</a> has reached an agreement to acquire Singapore-headquartered reinsurance company <a href="https://www.dealstreetasia.com/stories/acr-capital-stake-146655/">Asia Capital Reinsurance Group</a> (ACR), according to a press statement.</article>

Bermuda-based reinsurance major <a href="https://www.dealstreetasia.com/stories/Catalina-Holdings/">Catalina Holdings</a> has reached an agreement to acquire Singapore-headquartered reinsurance company <a href="https://www.dealstreetasia.com/stories/acr-capital-stake-146655/">Asia Capital Reinsurance Group</a> (ACR), according to a press statement.
ACR is majority-owned by the UK-based 3i Group, Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, Singapore’s Temasek Holdings and Japan’s Marubeni Corporation.
The acquisition marks Catalina&#8217;s first strategic move into Asia to increase its exposure to the significant run-off [insurance] market across the continent.
A report by PwC in 2019 mentioned that Asian non-life run-off reserves are estimated at around $100 billion.
Catalina intends to use ACR and Singapore as a hub to build a strong Asian run-off platform.
“There are significant opportunities for further acquisitions in Asia, in what is a developing and growing run-off market,” said Chris Fagan, the Chief Executive of Catalina Holdings.
The acquisition is expected to complete in the first half of 2020 subject to regulatory and other approvals.
DealStreetAsia reported in July 2019 that ACR’s shareholders had revived its stake sale plan earlier this year after a proposed divestment to a Chinese buyer fell through a few years before.
Financial terms of the deal remain undisclosed.
At the end of September 2019, ACR registered $835 million in shareholder equity as well as $1.3 billion of unearned premium reserve and a $2.1 billion in total assets, the press statement mentioned.
Following the acquisition of ACR, Catalina will have total pro-forma assets of $7.5 billion. ACR will cease writing business with immediate effect and all existing policies in force will be serviced until expiry.
Established in 2006, ACR’s reinsurance portfolio extends across a wide range of business lines that include property, motor, marine, agriculture, engineering, and aviation. The company also has offices located across Asia, including Singapore, Japan, South Korea, Malaysia, and Hong Kong.
Catalina Holdings, set up in 2005, has acquired or reinsured over $7.5 billion of non-life insurance and reinsurance liabilities. Catalina has received approvals from Bermudian, Irish, Swiss, UK (PRA and FCA) and various US state insurance regulators for prior acquisitions and reinsurance transactions.
Catalina operates from 11 global offices situated across the United States, Bermuda, Ireland, United Kingdom and Switzerland.
King &amp; Spalding were the legal advisors to Catalina for the transaction while Credit Suisse advised ACR and its shareholders. Allen &amp; Overy acted as legal advisor for ACR.

ACR is majority-owned by the UK-based 3i Group, Malaysia’s Khazanah Nasional Berhad, Singapore’s Temasek Holdings and Japan’s Marubeni Corporation. 

Catalina Holdings acquires Temasek-backed reinsurer ACR

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Catalina Holdings acquires Temasek-backed reinsurer ACR

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