NationsBuilders Insurance Services announces definitive agreement to transfer subsidiary’s residential construction liabilities to Catalina Holdings
By John Skelly26 June 2014
NationsBuilders Insurance Services, Inc., (NBIS), a portfolio company of SunTx Capital Partners, announced that it has entered into a definitive agreement with Catalina Holdings (Bermuda) Ltd., under which NationsBuilders Insurance Company (NBIC) will transfer its residential construction liabilities totaling $76,250,000 pre-adjustments to Catalina via a novation agreement.
As part of the transaction, Catalina, a long term consolidator in the non-life insurance/reinsurance run-off sector, will acquire the San Diego based claims operation that manages the residential construction liability portfolio. NBIC assumed the Liabilities from ProBuilders Insurance Company from 2002 to 2010. The transaction excludes the heavy construction liabilities associated with NBIC’s core business.
The transaction, which is expected to close July 31, 2014, is subject to approval by the District of Columbia Department of Insurance, Securities and Banking and the Bermuda Monetary Authority. Keefe, Bruyette & Woods served as financial advisor and Morris, Manning & Martin, LLP served as legal counsel to NBIS with respect to the transaction.