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The retro fund has redeemed 99% of share capital, returning around $106mn to public fund investors.
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The deal will also provide $100mn in new equity funding to the legacy carrier.
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The purchaser is known for having a very low cession ratio, although it said it would leave Alleghany to operate independently.
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The acquirer has forecast premiums of $1bn by 2025 at the multi-class coverholder
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The transaction will create a reinsurance entity roughly on a par with Scor in terms of net reinsurance premium.
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The deal values the TransRe owner at 1.26 times book value as of 31 December 2021, and represents a 29% premium on its stock price.
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Completion of the buyout remains subject to US bankruptcy courts recognising the agreement.
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The new company will focus on expanding into US coastal areas.
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The firm has been in run-off since late 2020, and another former Credit Suisse affiliate was recently sold to legacy writer Marco.
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Nephila will maintain a minority holding in the MGA, which is looking for paper from more reinsurers and ILS firms.