Carrick Group Limited, a Bermuda‑based non‑life legacy insurance firm specializing in reinsurance and run‑off services, has announced that its subsidiary Carrick Re Ltd. has entered into a loss portfolio transfer agreement with several entities affiliated with Nationwide.
Carrick Re Ltd. intends to assume the covered business of National Casualty Company of America, Limited; National Casualty Company, UK Branch; and Nationwide General Insurance Company, UK Branch, under a deal structured ahead of a proposed Part VII transfer.
The business in question has been in run‑off since 1974. It consists of residual claims and exposures stemming primarily from property and casualty re/insurance tied to US‑based Fortune 500 firms.
Carrick’s chief operating officer, Phil Hernon (pictured above), said the firm collaborated closely with Nationwide on the transaction and added that Carrick has the necessary capabilities to manage such run‑offs efficiently.
“We look forward to completing the legal transfer. We have the expertise to run off companies in an efficient way while protecting the policyholders and the reputation of all parties, and this type of transaction fits our business model perfectly,” Hernon said.
Carrick previously concluded a loss portfolio transfer with IRB (Re), a Brazilian reinsurer, in which Carrick Re Ltd. entered into an agreement covering IRB (Re)’s UK branch and Carrick UK Services assumed that branch’s employees and operations. That transaction also preceded a Part VII transfer.
In another initiative, Carrick UK Holdings Company, a subsidiary of Carrick Group, acquired two Irish captives – BMS International Insurance DAC and Seamair DAC – from Bristol‑Myers Squibb. Both captives are regulated by the Central Bank of Ireland.
Together, these transactions demonstrate the strategy of combining legacy liability transfers, such as LPTs, with geographic expansion via acquisitions, particularly in Europe.
The broader market has seen several significant LPTs recently, such as the US$2.3 billion agreement between AXIS Capital and Enstar, reflecting a trend of firms transferring reserves to refocus on core operations and improve capital efficiency.
What are your thoughts on this story? Please feel free to share your comments below.
