Bermuda-based White Mountains Insurance Group, Ltd. announced that its subsidiary White Mountains Re has acquired Helicon Re Holdings, Ltd. for approximately $150 million.
Helicon Re Holdings is the parent of Helicon Reinsurance Company, Ltd. It had “GAAP shareholders’ equity of approximately $153 million as of November 30, 2007,” the announcement indicated. It further noted that in 2006 and 2007, “Helicon Re provided quota share retrocessional coverage to White Mountains Re,” which was not renewed for 2008. Helicon Re was subsequently put into runoff.
Allan Waters, CEO of White Mountains Re explained: “With the deteriorating market conditions in the property cat business, we no longer needed retrocessional capacity from Olympus Re and Helicon Re and terminated our contracts with them. Through this transaction, we are acquiring approximately $14 million of unearned premiums and a strong balance sheet. We believe that the runoff of the reserves over the next few months will add value to White Mountains.”
Source: White Mountains – http://www.whitemountains.com.
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