Mt. Laurel, N.J. — GMAC Insurance (GMACI), a global finance company, and Maiden Holdings Ltd., Bermuda, announced that they have closed an agreement for the acquisition of GMACI's reinsurance operations, GMAC RE, by Maiden Holdings' wholly owned U.S. subsidiary, forming a dedicated U.S. reinsurance group, Maiden Re, based in Mt. Laurel, N.J.
With GMAC RE's acknowledged leadership in reinsurance solutions, Maiden Re will bring more than 25 years of stability and market intelligence in the treaty, facultative and specialty/alternative areas of reinsurance. An established focus on property/casualty reinsurance business has grown in recent years to include A&H and E&S property insurance.
Maiden Re will continue to offer the same level of collateral commitment and trust capabilities as GMAC RE, including the security of the dedicated financial trust, an individually segregated trust not shared with other cedant funds. Customers will still benefit from the company's underwriting expertise, exemplary claims handling and careful, committed approach to their long-term growth, the company says.
GMAC RE customers will benefit from Maiden Holdings' strong balance sheet and the dedicated Maiden Re platform. The combined operations of GMAC RE and Maiden Holdings will create a reinsurer with significant writings. As part of the agreement, two U.S. licensed and domiciled insurance companies will be transferred to Maiden Holdings following regulatory approval. Until regulatory approval for the acquisition of the insurance companies is obtained, a GMACI insurance company will continue to write reinsurance and collateralize obligations, which Maiden will reinsure on a 100% basis. As the change of control approvals are received, future business will be written directly by Maiden.
Source: Maiden Re
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