TransRe has acquired the exclusive renewal quotation rights to Maiden Re’s US treaty reinsurance underwriting business.
The US treaty business targets regional property and casualty, accident and health and personal auto insurers.
The deal excludes Maiden’s AmTrust or international insurance services and capital solutions businesses in Europe.
The sale starts the process of simplifying Maiden and is aimed at boosting its profitability.
Maiden president and CEO designate Lawrence Metz said: “The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and 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, which in turn will create value for our shareholders.”
Maiden’s US treaty team, comprising underwriters, actuaries and claims personnel, has migrated to TransRe as part of the deal and will be based at new offices in Mt Laurel, New Jersey.
This includes Tom Highet who has been named executive vice president at TransRe. In the new role, he will report to TransRe North America president Ken Brandt.
Highet had a 30-year stint at Maiden and formerly served as the president of Maiden Reinsurance North America.
“During the past 30 years Tom and his team have built a strong and respected franchise, with excellent customer and broker relationships. We know these lines of business well, and together with our new colleagues we are well positioned to serve the needs of all our customers and brokers,” Brandt noted.
At the same time, Maiden is in advanced negotiations to offload its reinsurance business in North America to a third party.
Furthermore, the sale of Maiden Reinsurance North America is expected to cover around $1.1bn of loss and loss adjustment expense (LAE) reserves as of 30 June 2018.
However, the firm also noted that the talks may or may not lead to a sale agreement.