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Member, Beacon International Group, Ltd.
SCOTTSDALE, Ariz.—Montpelier Re Holdings Ltd. has agreed to sell its U.S. excess and surplus lines insurance business to Selective Insurance Group Inc. for about $55 million cash, Montpelier said Tuesday.
Hamilton, Bermuda-based Montpelier said in a statement that it expects the sale of Montpelier U.S. Insurance Co. to close in the fourth quarter, subject to regulatory approvals and closing conditions. The price is based on MUSIC’s net asset value as of June 30.
Short-tail reinsurance focus
“In the current environment, we believe now is an appropriate time to sharpen our underwriting focus on our core short-tail reinsurance lines,” Christopher L. Harris, president and CEO of Montpelier, said in the statement. “This transaction will make us more nimble and will allow us to redeploy additional capital into our Bermuda and London platforms, where we are seeing increasingly encouraging market conditions.”
Selective said it will maintain the current E&S operations in Scottsdale, Ariz., where MUSIC’s office is located. Richard Nenaber, president and CEO of MUSIC, will continue to head the organization.
Selective said the deal provides it with “additional scale and geographic diversity.”
“This acquisition includes an end-to-end information technology solution and financial reporting infrastructure that helps build the foundation we need to grow,” Gregory E. Murphy, the Branchville, N.J. insurer’s chairman, president and CEO, said in the statement.
In another recent purchase, Montpelier Reinsurance Ltd. in August said it had acquired renewal rights to Torus Insurance Holdings Ltd.’s property catastrophe reinsurance business.
LONDON—A consortium said Monday that it has agreed to buy the London businesses of Singapore-based insurance investment business Whittington Group Pte.