Total return reinsurer Sandell Re & SOBC in new legacy acquisition

by Artemis on December 6, 2017

The joint-venture legacy or distressed run-off and commutation insurance and reinsurance entity formed by total-return reinsurer Sandell Re and legacy specialist SOBC Corp. has entered into a new acquisition, purchasing 100% of the stock of American Safety Risk Retention Group, Inc. of Vermont.

SOBC Sandell, as the joint-venture is called, was formed by Sandell Asset Management backed Sandell Re and run-off specialist SOBC Corp in late 2016.

The JV provides Sandell Re with another way to source all-important premium float that can be put to work through the hedge fund like investment strategies of Sandell Asset Management. Meanwhile SOBC provides the expertise to manage the run-off book, as well as experience in sourcing and structuring run-off or legacy insurance and reinsurance acquisitions to the partnership.

As of December 1st 2017 SOBC Sandell acquired 100% of the shares of the American Safety Risk Retention Group, Inc. of Vermont, after the Vermont Department of Financial Regulation approved the change of control of the captive.

This is the sixth acquisition by the SOBC Sandell group.

Stephanie Mocatta, CEO said, “This acquisition builds on the recent transaction in Montana and we are very pleased to be able to provide finality to risk retention groups in these states. SOBC Sandell has the specialist skills and understanding that enables us to purchase these groups, allowing the previous owners to exit without any future liability. We are actively looking at other opportunities to work with Risk Retention Groups and Captives.”

Rick Ecklord, Sandell Re added, “We are really pleased with the growth in the group and more particularly the team’s ability to provide solutions for complex, difficult or challenging insurance situations, through the provision of innovative solutions. This acquisition consolidates SOBC Sandell’s reputation as a solution-driven company.”

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