13 October 2020Bermuda analysis

Fleming Re to acquire Sinclair in legacy deal

Fleming Re Holdings will acquire Sinclair Insurance Company, a Bermuda-based captive that was incorporated in 1985 and has provided workers’ compensation, general and products liability and commercial auto lines of business.

Sinclair, which is managed by Aon, also provided reinsurance to the primary insurers of certain casualty risks of affiliated companies. Working closely with the third party administrators and front companies, Fleming Re said it will continue to provide the same quality care and coverage.

The deal remains subject to regulatory approval. If approved. the acquisition will give Sinclair’s shareholders an exit solution, allowing full legal finality, elimination of operating expenses, and a release of capital.

Eric Haller, chief executive officer at Fleming Re, said: “This transaction involves a captive with more complexity as the programme historically underwent several commutations and novations. Fleming Re was able to achieve the client’s goals with a transaction that was mutually beneficial.”

“Fleming Re has a robust pipeline and several transactions that will be closing in the coming months,” Haller added.

Ciaran McCabe, vice president of Aon Insurance Managers (Bermuda), said: “There is a vibrant legacy/run-off market in Bermuda and we have developed a comprehensive suite of finality solutions for our clients. In this instance, we worked extensively with our client, in collaboration with Fleming Re, to deliver a captive sale solution that provided legal finality and enabled the return of excess capital to its shareholders.”