Run-off specialist Armour Group Ltd. has led a group of investors to acquire Gibraltar-based Elite Insurance Co. Ltd. (EIC) and its affiliate Elite Business Development Ltd. (EBD).
The financial details of the transaction were not disclosed. Collectively, EIC & EBD are referred to as “Elite.”
On the July 5, 2017, Elite announced that it had ceased writing new business, having previously distributed its products through third party intermediaries located in UK and Europe. As of March 31, 2017, the gross reserves associated with the run-off business of Elite were in excess of £250 million (US$355.7 million).
As part of the change of control of Elite, an Armour affiliate, Armour Risk Management Ltd., is taking operational management of Elite and is assuming key members of staff with in depth knowledge of the business.
The Gibraltar Financial Services Commission (GFSC) has approved of the change of control and the concurrent change in operational management from Elite to Armour. The submission for the approval of the transaction was made to the GFSC on the basis that the transfer will provide ongoing professional run-off management and appropriate corporate governance for Elite.
Bermuda-based Armour is a group of insurance and service companies which specialize in the creation of run-off solutions and acquisitions for the re/insurance industry.
Armour recently announced a major investment in its platform by Aquiline Capital Partners LLC, a New York private equity firm that invests in financial services and financial technology, which is led by Jeff Greenberg as chairman and CEO.