Bermudian-based run-off specialist Fleming Re has agreed to acquire Sinclair Insurance Company, a captive insurer domiciled on the island.

Sinclair, which was incorporated in 1985, has provided workers’ compensation, general and products liability and commercial auto lines of business.

The captive was used to provide reinsurance to the primary insurers of affiliated companies.

The acquisition provides the shareholders of Sinclair with an exit solution allowing full legal finality, elimination of operating expenses and a release of capital.

Eric Haller, Fleming Re’s chief executive officer, said: “This transaction involves a captive with more complexity as the programme historically underwent several commutations and novations.

“Fleming Re was able to achieve the client’s goals with a transaction that was mutually beneficial. It was a pleasure working alongside Aon, who managed Sinclair, to bring about the successful close of this transaction.”

Mr Haller added: “Fleming Re has a robust pipeline and several transactions that will be closing in the coming months”.

Ciaran McCabe, vice-president Aon Insurance Managers (Bermuda) Ltd, said: “There is a vibrant legacy/run-off market in Bermuda and we have developed a comprehensive suite of finality solutions for our clients.

“In this instance, we worked extensively with our client, in collaboration with Fleming Re, to deliver a captive sale solution that provided legal finality and enabled the return of excess capital to its shareholders.”

Fleming Re is a Bermuda based class 3A insurance company, which is sponsored by private equity firm Fleming Corp and has a permanent capital base including a range of institutional shareholders.