Compre has acquired the hospital liability portfolio of German insurer Basler Sachversicherungs-AG, an entity of the Baloise Group, subject to regulatory approval by the German Federal Financial Supervisory Authority. Terms of the transaction are not disclosed.
The deal, structured as a portfolio transfer, is the latest step in its ambition to build a centre of excellence for legacy MedMal business in Europe. The portfolio mainly consists of underwriting years 2004 to 2018 and as such has been in run-off for several years. The transaction, which is expected to close by year end 2022, includes the hospital liability portfolio of Basler with technical liabilities of approximately €200 million.
Subject to the relevant regulatory approvals, the portfolio will transfer in its entirety to Compre’s Finnish subsidiary Bothnia International Insurance Company. Compre will work closely with Detmold-based Ecclesia Group Assekuranz Service GmbH, which will continue to provide claims support for existing customers, ensuring smooth continuity of service for policyholders.
In addition, Compre also recently completed a two-tranche loss portfolio transfer (LPT) for an undisclosed European insurer, with the second tranche covering unexpired risks on a pre-determined basis. This is the first time Compre has underwritten a two-tranche LPT and is developing its pre-packaged forward LPT proposition to deliver additional future income, while providing greater certainty for its clients’ future results.
Simon Hawkins, chief executive Europe said: “This transaction also demonstrates, after Compre recently redomiciled to Bermuda, our commitment to executing legacy deals in Europe as well as the Lloyd’s and US legacy markets. While this is a new class of business for Compre, it is very much a signal of our intent to build MedMal into a significant additional area of specialisation.”
Compre, portfolio, legacy, transaction, MedMal, German