European fund manager Twelve Capital Group is the majority investor in a placement by Catalina General Insurance – a subsidiary of Catalina Holdings (Bermuda) – of $45.5 million of floating rate subordinated notes for a ten-year period.
The notes are tier 2 eligible under the Basel Accords and will increase the company’s statutory capital. The proceeds will be used to enhance the strength and efficiency of the capital structure as well as support the firm’s growth strategy.
Catalina’s institutional shareholders are fund manager Apollo Global Management and Canadian pension funds Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan Board.
“We are pleased that our offering around private debt is meeting the capital needs of high quality insurers as well as regulatory requirements in Bermuda, which is one of Twelve Capital’s target markets,” said John Butler, chief executive officer and managing partner of Twelve Capital (UK).
Based in Bermuda, Catalina acquires and manages non-life insurance and reinsurance companies and portfolios in run-off (discontinuation). Since being founded in 2005, it has made 18 acquisitions with an average consideration of more than $100 million.
Twelve Capital, which has offices in London and Zurich, is an investment manager specialising in insurance investments for institutional clients. Its investments cover insurance bonds, insurance private debt, catastrophe bonds, private insurance-linked securities and insurance equity.