Compre, a Bermuda-based legacy group, is to acquire hospital liability (medmal) portfolio of German insurer Basler, a unit of Baloise Group.
The deal is subject to regulatory approval by the German Federal Financial Supervisory Authority (BaFin).
Terms of the deal have not been divulged.
The deal is expected to close by year-end 2022.
Structured as a portfolio transfer, the transaction marks a milestone for Compre in building a ‘centre of excellence’ for medmal business in Europe.
The portfolio primarily comprises underwriting years from 2004 to 2018, and as such has been in run-off for many years.
The deal includes the hospital liability portfolio of Basler with technical liabilities of around €200m.
The portfolio will transfer entirely to Bothnia International Insurance Company, the Finnish subsidiary of Compre.
Compre will work closely with Detmold-based Ecclesia Group Assekuranz Service, which will continue to offer claims support for existing customers, and ensure smooth continuity of service for policyholders.
Recently, Compre finished a two-tranche loss portfolio transfer (LPT) for an unnamed European insurer, with the second tranche featuring unexpired risks on a pre-determined basis.
For the first time, Compre has underwritten a two-tranche LPT and is building its pre-packaged forward LPT proposition to offer further future income, while ensuring much more certainty in the future results of its clients.
Besides Bermuda, Compre has operations in Finland, Germany, Malta, Switzerland, the UK, the US and at Lloyd’s of London.