Fleming Re has signed an agreement to acquire a Bermuda-based captive Sinclair Insurance Company for an undisclosed sum.

The acquired company used to provide reinsurance to the major insurers of certain casualty risks of affiliated companies.

This acquisition, subject to regulatory approval, provides the Sinclair shareholders with full legal finality, elimination of operating expenses, and a release of capital.

Incorporated in 1985, Sinclair provided Workers’ Compensation, General & Products Liability and Commercial Auto line of business.

After the closing of the transaction, Fleming Re intends to offer same quality care and coverage in partnership with TPAs and front companies.

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

“It was a pleasure working alongside AON, who managed Sinclair, to bring about the successful close of this transaction. Fleming Re has a robust pipeline and several transactions that will be closing in the coming months.”

Commenting on the development, Aon Insurance Managers Bermuda vice-president Ciaran McCabe 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.”

Fleming Re is a class 3A insurance company which offers a range of reinsurance structures and finality solutions for legacy liabilities, as well as liquidity and risk transfer alternatives to the middle market insurance sector.