Maiden Holdings, Ltd., a Bermuda based holding company, and its subsidiary, Maiden Insurance Company, Ltd., a Bermuda reinsurer, on November 3, 2008 acquired the GMAC Re reinsurance business from GMAC LLC. Maiden’s subsidiary, Maiden Holdings North America, Ltd. acquired GMAC Re LLC, a reinsurance intermediary, and, in addition, renewal rights for business written by GMAC Re. In connection with the transaction Maiden Insurance Company assumed approximately $750 million of loss reserves and $200 million of unearned premium relating to the GMAC Re business. Click here to read Maiden’s press release about the acquisition.
In the second phase of the transaction, Maiden Holdings North America agreed to acquire two insurance companies, GMAC Direct Insurance Company and Integon Specialty Insurance Company. Those acquisitions are subject to regulatory approval.
Maiden also announced plans to raise an additional $260 million of capital to support the acquisitions.
Edwards Angell Palmer & Dodge LLP represented Maiden in the transaction.
