Transaction will see the 50 state E&S facility bolstering the operating capabilities of Applied and its strategic partners, as the specialty market hardens
Omaha, Nebraska -- February 23, 2022 -- Applied Underwriters has announced that it will acquire Catlin Specialty Insurance Company (‘A+’ rated) from the AXA XL group of companies, consolidating the company into the North American Casualty group of companies (‘A’ rated) in a move intended to bolster Applied’s operating capabilities in support of its strategic partners as the E&S market hardens. The transaction is scheduled to close during Q2 as anticipated regulatory approvals are received.
Mr. Jamie Sahara, President of Applied Underwriters, characterized the acquisition as a major advantage to Applied, its emerging E&S market leadership and its growing collaboration with channel partners in the sector: “Applied has consistently executed our commitment to sustaining and growing our national platform for E&S business and to intensifying our relationships with our strategic partners with whom we have impacted the sector. This is an important development for us and for our partners in the E&S market.”
Mr. Steve Menzies, Chairman of Applied Underwriters, noted that the structure for the transaction drew upon a business transfer process used in Oklahoma that is based upon the successful Part VII transfer procedure used in the UK and the EU: “We found great potential in the Oklahoma Insurance Business Transfer (IBT) Act’s regulatory process and its regulators’ application of it. Uniquely, the IBT process permits insurers the ability to effect the absolute transfer of blocks of insurance business from one insurer to another, providing both the transferring and assuming companies an efficient, transparent and straightforward process, while also realizing a legal finality. Our deal was complex and the Oklahoma regulatory format really helped facilitate this.”
According to Mr. Menzies, the transaction required the redomestication of the company: “The Catlin Specialty Insurance Company is licensed as an E&S carrier in all states except Oklahoma where it will be domiciled and where it holds a large number of surplus lines authorizations. To effect the acquisition, Applied and AXA XL worked with Delaware and Oklahoma regulators to redomesticate Catlin from Delaware to Oklahoma, so that Oklahoma’s IBT process could be used. We thank the regulators involved in these states in acting to benefit the sector and, ultimately, the clients we serve.”
Formed in the 1950s, the Company that is Catlin Specialty Insurance Company today was the subject of a series of transactions that culminated in its acquisition in 2006 by Catlin Group Limited. In 2015, the Company became part of what is now AXA XL.
Catlin Specialty Insurance Company currently holds an ‘A+’ rating from AM Best. The North American Casualty companies are rated ‘A’ by AM Best.
For further information contact: Ryan Gerding, Public Relations, at +1 (913) 602-8531 or at firstname.lastname@example.org.
About Applied Underwriters (www.auw.com)
Applied Underwriters® is a global risk services firm that helps businesses and people manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has been distinguished by its innovative approaches to client care and by its strong financial strength. Applied Underwriters operates widely throughout the US, UK, EU and Middle East. Its operational headquarters is located in Omaha, Nebraska.
About AXA XL (www.axaxl.com) AXA XL, the property & casualty and specialty risk division of AXA, provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. AXA XL partners with those who move the world forward.