Catalina Holdings
PE-OWNED
Acquired by Apollo Global
What PE Will Likely Do
Premium increases for policyholders as Apollo seeks to extract returns through price optimization rather than operational efficiency
Claims processing delays and denials increase as staff is reduced and claims adjusters face higher case loads
Reduction in specialized insurance products offered as Apollo standardizes portfolio to 'core' profitable lines
Customer service degradation with longer hold times, outsourced call centers, and reduced agent training
Technology and fraud detection systems maintenance deferred, leading to security vulnerabilities and slower digital experiences
Expected Timeline
“0 to 6 months months”
Apollo announces 'strategic review' and 'operational excellence initiative'; senior Catalina executives with deep industry relationships depart; actuarial and underwriting teams face hiring freezes
“6 to 12 months months”
First wave of regional office consolidations; claims processing centers merged or outsourced; noticeable increase in policy renewal premiums (10-20%); customer complaint volume rises
“12 to 24 months months”
Significant degradation in claims response times (from days to weeks); policyholder retention efforts shift to price-only competition; specialized commercial lines (marine, aviation, specialty liability) sold or run off; experienced underwriters exit
What You Can Do
Actions
Document all policy terms, coverage limits, and exclusions now before renewal changes take effect
If holding Catalina commercial policies, secure alternative quotes from mutual insurers or non-PE-backed carriers within 12 months
For claims in process, maintain detailed records of all communications and push for resolution before staffing changes accelerate
Monitor AM Best and other rating agency downgrades as early warning signals of capital stress from debt loading
Business policyholders should review certificates of insurance with clients/partners to ensure Catalina coverage remains acceptable
Alternatives
Look for family-owned or employee-owned businesses