TransRe has acquired the renewal rights to Maiden Re’s U.S. treaty reinsurance underwriting business for an undisclosed price, even as talks to sell Maiden’s North America arm are in “advanced discussions.”
The New York-based reinsurer said that it has hired Maiden Re’s U.S. treaty team and will immediately offer renewal quotations on the affected book of business, which focuses on regional property/casualty, accident and health, and personal auto insurance.
Maiden Re is a subsidiary of Maiden Holdings Ltd., a Bermuda-based holding company.
Maiden Holdings’ announcement regarding TransRe also noted it is in “advanced” discussions involving the sale of Maiden Re North America to an unidentified third party.
According to the announcement, the transaction would cover about $1.1 billion of loss and LAE reserves as of June 30, 2018. Maiden cautioned that the sale of its North America division is not a done deal just yet. The company framed the potential transaction as a way to help Maiden simplify its operations through ongoing restructuring.
TransRe’s agreement with Maiden gives it new employees from the transaction including Tom Highet. Previously president of Maiden Reinsurance North America and a 30-year Maiden Re veteran, Highet will be a TransRe executive vice president and report to Ken Brandt, president of TransRe North America. A team of underwriters, actuaries and claims personnel are also coming on board at TransRe and will be based in new offices in Mt. Laurel, N.J.
Brandt said in prepared remarks that the move is “an excellent strategic and cultural fit for customers and us.”
Lawrence Metz, Maiden Re’s former general counsel, soon-t0-be president and CEO, said that the sale of its U.S. treaty business was an important step toward ongoing efforts to rebalance the company.
“We believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability, and broaden our ability to allocate capital to future strategies,” Metz said in prepared remarks.
The TransRe deal does not include any of Maiden’s Bermuda underwriting business, such as its AmTrust business, or its International Insurance Services and Capital Solutions business in Europe. Maiden, in its own announcement of the TransRe deal, said that those three remaining legs, which are the bulk of its business, will continue as part of its ongoing operations.
Earlier in August, Maiden Holdings announced that President and CEO Art Raschbaum would be retiring on Sept. 1 for personal reasons. Metz was named to succeed him. Maiden CFO Karen Schmitt plans to retire from that position, though she’ll remain as executive vice president until March 1, 2019. Maiden Bermuda President Patrick Haveron will be the new chief financial officer and also chief operating officer as of Sept. 1, and he’ll stay on as president of Maiden Bermuda.
Sources: TransRe, Maiden Re/Maiden Holdings