Bermuda-domiciled global specialty reinsurance group Compre Group Holdings Limited has finalized its acquisition of the CSE Group, the US subsidiary of Covéa.
The announcement was made today by Compre.
The CSE Group includes two California-domiciled personal lines insurance carriers that ceased to underwrite new business in 2024. This transaction represents the second instance of business dealings between Covéa and Compre, which Compre considers a reinforcement of its dedication to the US market.
Compre entered into an agreement in 2024 to acquire two US domiciled licensed insurance carriers, a deal that concluded following regulatory approval this month. This acquisition provides Compre with a footing in the US to further enhance its presence in the North American market. The transaction encompasses reserves previously written covering auto and property insurance in the US.
Compre views this acquisition as part of its ongoing strategy for growth and market penetration within the United States.
In August 2024, Compre’s Bermuda-based reinsurer, Pallas Reinsurance Company Ltd., completed a legacy reinsurance transaction with Accelerant, providing approximately $150 million in coverage on loss reserves.
Earlier in January 2024, Compre finalized the acquisition of two European casualty and motor liability portfolios from undisclosed international insurance groups, enabling Pallas Reinsurance Company Ltd. to underwrite about €200 million in reserves.
Compre aims to increase its reserves under management in 2025 by deploying capital to transactions meeting its defined criteria.
Compre’s financial results for 2024 indicate a net loss after tax of ($128.5) million and an operating loss of ($45.3) million. Despite the loss, the Group’s Bermuda Solvency Coverage Requirement (BSCR) Ratio was reported at 187% at the end of 2024.
Compre has acquired over $1.7 billion of new reserves since the start of 2022.
Considering Compre's recent acquisition and its stated aim to increase reserves, what potential impact might this activity have on Compre's financial performance in the coming years? Share your thoughts below.
