Hedge fund reinsurer Sandell Re’s legacy play makes first acquisition

by Artemis on January 11, 2017

SOBC Sandell, a joint-venture legacy or distressed run-off and commutation insurance and reinsurance entity established by hedge fund reinsurer Sandell Re Ltd. and run-off specialist SOBC Corp, has made its first acquisition.

In December, SOBC Sandell completed the acquisition of PIA Captive. PIA Captive was a risk retention group in Montana, PIA RRG, before this acquisition.

Sandell Re benefits from bringing additional premium float into its business through the acquisition of legacy books of insurance or reinsurance, with asset manager Sandell Asset Management Corporation managing the investment side of the reinsurance business, while SOBC Corp. can apply its expertise in managing these transactions through to run-off. The joint-venture was established in November 2016.

SOBC Sandell worked closely with both the sellers and the Montana Commissioner of Securities and Insurance is structuring this transaction to enable finality for the sellers.

Stephanie Mocatta, Chief Executive Officer of SOBC Sandell, commented on the acquisition; “We are delighted to have made this first acquisition, and particularly pleased to have worked closely with the Montana CSI to find a unique solution for the members of the Risk Retention Group who wished to exit the business. We would like to thank the seller, the CSI and our local council, Jackie Lenmark of Keller Law for all the time, thought and effort that went into structuring this deal.”

Rick Ecklord, of Sandell Re Ltd, added; “We are pleased to have closed our first acquisition as SOBC Sandell. This shows that the combined skills of SOBC and Sandell Re can work together effectively to provide legacy solutions for difficult and challenging run-offs. We look forward to the next challenge.”

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