Maiden Holdings acquires reinsurance business of GMAC International

Bermuda-based Maiden Holdings has completed acquisition of GMAC's reinsurance-related business

The acquisition includes the renewal rights on nearly $100m of predominantly personal auto quota share reinsurance as well as the supporting business development subsidiaries in Europe.

Maiden said the transaction also includes the assumption of more than $100m of loss reserves and net unearned premiums as well as the corresponding assets, and was funded through existing cash and investments.

GMAC International Insurance primarily focuses on providing branded auto and auto-related insurance products through its insurer partners to retail customers in the European Union and other global markets.

Maiden expects the transaction to be accretive to 2011 earnings, and to generally perform within its overall stated targets of a 96% combined ratio and medium-term Return on Equity data (ROE) target of 15%.

Maiden president and CEO Art Raschbaum said this transaction achieves company's goal of expanding the existing Maiden model outside the US and Bermuda, and positions the company well to begin to serve the non-catastrophic reinsurance needs of property and casualty insurance clients across Europe and in other select markets.