By Ben Fox Rubin
Insurance consultancy Enstar Group Ltd. (ESGR) said it agreed to
buy HSBC Holdings PLC's (HBC, HSBA.LN, 0005.HK) U.S. and Canadian
closed-life insurance businesses for $181 million, as Enstar
continues to expand in North America.
"Whilst our core focus remains non-life property and casualty
run-off, we are excited to further expand our portfolio of run-offs
with this acquisition of closed-life insurance business from HSBC,"
Enstar Chief Executive Dominic Silvester said.
Enstar acquires and manages insurance companies and provides
management, consultancy and other services to the insurance
industry. Last month, the Bermuda-based company agreed to buy
insurance holding company SeaBright Holdings Inc. (SBX) for about
$249.3 million in cash.
Enstar will be buying Household Life Insurance Co. of Delaware
and HSBC Insurance Co. of Delaware from an HSBC affiliate. Both
businesses have written U.S. and Canadian life insurance, including
credit insurance, term life insurance, assumed reinsurance,
corporate-owned life insurance and annuities.
The company plans to fund the deal through cash on hand and by
drawing from its revolving credit facility.
Both the HSBC and SeaBright transactions are expected to close
by the end of the first quarter of 2013.
Enstar's shares were up 0.02% at $93.85. HSBC American
depositary shares were up 1.4% premarket at $43.66.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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