RenaissanceRe has struck an agreement to buy a minority stake in run-off specialist Catalina Holdings.

Both companies are based in Bermuda. The agreement involves RenaissanceRe Ventures Ltd, a subsidiary of RenRe.

The deal is expected to close concurrently with the previously announced acquisition of a majority stake in Catalina by private-equity firm Apollo Global Management.

“RenaissanceRe’s investment will provide strategic benefits to Catalina and help the business to explore a wider range of transaction structures as it continues to execute its growth strategy that has seen the business grow steadily and consistently over many years,” Catalina and RenRe said in a joint statement.

Terms of the deal were not disclosed.

Chris Fagan, chairman and chief executive of Catalina, welcomed RenRe as a shareholder.

“They join us at time of significant opportunity to help us capitalise on the continued growth of the non-life legacy sector,” Mr Fagan said.

“Together with Apollo, our new shareholders provide us with access to additional expertise and substantial financial resources that will help us to take advantage of the vast array of legacy market opportunities we continue to see, driving our business through the next phase of its growth, and strengthening our position as one of the legacy market’s leading consolidators.”

The deal was announced just a week after RenRe announced it was teaming up with Reinsurance Group of America to launch Langhorne Re, a new life and annuities reinsurer.

Aditya Dutt, president of Renaissance Underwriting Managers, Ltd, will join the Catalina board of directors.

Kevin O’Donnell, CEO of RenRe, said: “We are pleased to partner with Catalina as they have demonstrated a strong, consistent track record in managing legacy businesses.

“This transaction is consistent with our strategy to expand the suite of capabilities at our disposal to bring to our clients, through partnership with a proven industry leader.

“We look forward to working with the Catalina team on new opportunities.”

Since its 2005 launch, Catalina has completed 24 transactions, acquiring $5.6 billion of non-life insurance and reinsurance liabilities, and as at September 30, 2017 had total assets of $3.6 billion and shareholders’ equity of $719 million.