Compre has added to the increased run-off activity in 2016 by making two reinsurance acquisitions.
The London market legacy firm has bought QBE’s share of the Ridgwell Fox & Partners (RFP) pool legacy reinsurance business.
In a separate deal, Compre signed agreements to buy the international reinsurance business of an unnamed German mutual insurer, “providing full economic, administrative and legal finality for its discontinued non-core international reinsurance business”.
The run-off specialist did not include values for the size of its two acquisitions.
RFP is a reinsurance pool containing certain run-off liabilities of QBE and five other carriers.
The QBE deal is structured as a loss portfolio transfer, to be followed by an insurance business transfer, in line with the UK’s Part VII run-off legislation under the Financial Services and Markets Act of 2000.
The German deal is Compre’s second in that country following its run-off transaction with reinsurer Hamburger Internationale Rückversicherung (HIR) in 2014.
Nick Steer (pictured), CEO of Compre, said: “We are extremely pleased to announce the signing of the QBE deal and the acquisition in Germany, both of which demonstrate our ability to provide a range of carriers with finality for their legacy businesses.
“Demand for portfolio transfer deals in continental Europe is increasing and 2016 is likely to be a significant year as insurance CEOs look to focus on their core businesses and release capital tied up in supporting legacy liabilities,” said Steer.