On 18 November 2022 an order was made by the High Court sanctioning the insurance business transfer scheme pursuant to Part VII of the Financial
Services and Markets Act 2000, incorporating the entirety of the general insurance and reinsurance business written and/or assumed by AGF Insurance
Limited and Catalina London Limited to Catalina Worthing Insurance Limited. The proposed transfer became effective at 23:59 GMT on 30 November 2022.
AGF, CLL and CWIL
AGF is a UK-authorised insurer, which has been in run-off since 1998. Prior to that date, it predominantly had underwritten employers’ liability and public liability insurance in the United Kingdom. AGF was formerly known as the Employers’ Mutual Insurance Association Limited, N.E.M. Insurance Company Limited and NEM Insurance Company Limited. AGF also acquired the business of the National Employers Mutual in 1989.
CLL is a UK-authorised insurer, which has been in run-off since 2005. CLL was formerly known as American Re-Insurance Company (UK) Limited, Aetna Re-Insurance Company (UK) Limited, The Imperial Fire & Marine Re-Insurance Company Limited and Alea London Limited. CLL also acquired the insurance and reinsurance business of KX Reinsurance Company Limited and OX Reinsurance Company Limited on 30 November 2017.
CWIL is a UK-authorised insurer, which has been in run-off since 2012. CWIL was formerly known as Hartford Financial Products International Limited and in 2015 acquired the business of Excess Insurance Company Limited, a portfolio originally written by London & Edinburgh Insurance Company from Aviva Insurance UK Limited and the business written by the London branch of Hartford Fire Insurance Company.
The Transferors and CWIL are each wholly owned subsidiaries of Catalina Holdings UK Limited and each is in run-off. CHUK is itself an indirect wholly owned subsidiary of Catalina Holdings Bermuda Limited (CHBL). The group headed by CHBL (the Catalina Group) is an acquirer of legacy insurance portfolios.
Why is the Proposed Transfer happening?
The purpose of the Proposed Transfer is to consolidate and simplify the Catalina Group’s UK regulated insurance businesses into one insurance company in order to increase operational efficiency, reduce duplication and facilitate the efficient deployment of capital across the Catalina Group’s UK operations. This is intended to support both: (i) the management of the run-off of the existing portfolios of the Transferors and CWIL; and (ii) the acquisition and integration of additional portfolios going forwards.
Further information about the Proposed Transfer is set out on the CWIL website.