Enstar to Sell Starstone Lloyd’s Managing Agency to Newly Formed Venture Inigo
November 17 2020 - 4:15PM
Enstar Group Limited (NASDAQ: ESGR) (“Enstar”) and Stone Point
Capital LLC (“Stone Point”) today announced they have signed
definitive agreements to sell StarStone Underwriting Limited
(“SUL”), the Lloyd’s managing agency, together with the right to
operate Lloyd’s Syndicate 1301, to Inigo Limited (“Inigo”), a new
specialty re/insurance holding company.
Enstar, Stone Point and Dowling funds will
receive $30 million of consideration from the sale of SUL in the
form of Inigo shares upon closing. In addition, Enstar and Stone
Point will commit to invest up to $27 million and $18 million
respectively into Inigo.
Inigo is led by founders Richard Watson, Russell
Merrett and Stuart Bridges and will operate as a Lloyd’s specialty
insurer writing a streamlined portfolio of insurance and
reinsurance risks and will receive certain transitional services
and staff from Enstar.
In conjunction with the transaction, Enstar,
Stone Point and Dowling Capital will retain the economics of
Syndicate 1301’s 2020 and prior years’ underwriting portfolios as
this business runs off.
The Inigo investment is expected to close in
late 2020 and the SUL sale is expected to close in the first half
of 2021, subject to regulatory approvals and satisfaction of
customary conditions.
Dominic Silvester, Enstar’s Chief Executive
Officer, said: “This transaction optimises and capitalises on
StarStone International’s assets at Lloyd’s and provides an
opportunity to participate in a new venture with proven leadership
at a time of favourable market conditions. This is a positive
outcome for SUL, and we look forward to working with the Inigo
management team as they launch this new business.”
The SUL sale follows the previously announced
decision by Enstar and Stone Point to place StarStone’s
International business into an orderly run-off and review strategic
alternatives for the business. In addition to the SUL sale, Enstar
and Stone Point recently agreed to a renewal rights transaction for
StarStone’s European Financial Lines business, as well as the sale
of Belgian-based underwriting agent Vander Haeghen, part of the
StarStone International Group.
About Enstar
Enstar is a NASDAQ-listed leading global
insurance group that offers innovative capital release solutions
through its network of group companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. A market leader in completing legacy
acquisitions, Enstar has acquired over 100 companies and portfolios
since its formation in 2001. For further information about Enstar,
see www.enstargroup.com.
About Stone Point
Stone Point Capital LLC is a financial
services-focused private equity firm. The firm has raised and
managed eight private equity funds – the Trident Funds – with
aggregate committed capital of more than $25 billion. Stone Point
targets investments in companies in the global financial services
industry and related sectors. For further information about Stone
Point, please visit www.stonepoint.com.
Cautionary Statement
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include
statements regarding the intent, belief or current expectations of
Enstar and its management team. Investors are cautioned that any
such forward-looking statements speak only as of the date they are
made, are not guarantees of future performance and involve risks
and uncertainties, and that actual results may differ materially
from those projected in the forward-looking statements as a result
of various factors. In particular, Enstar, Stone Point and
Inigo may not be able to complete the proposed transaction on the
terms summarized above or other acceptable terms, or at all, due to
a number of factors, including but not limited to the failure to
obtain regulatory approvals or to satisfy other closing conditions.
Due to the global uncertainty, Enstar is unable to predict the
longer-term effects of the pandemic on its business at this time.
Important risk factors regarding Enstar can be found under the
heading "Risk Factors" in Enstar’s Form 10-K for the year ended
December 31, 2019 and in Enstar’s Form 10-Q for the three months
ended June 30, 2020 and are incorporated herein by reference.
Furthermore, Enstar undertakes no obligation to update any written
or oral forward-looking statements or publicly announce any updates
or revisions to any of the forward-looking statements contained
herein, to reflect any change in its expectations with regard
thereto or any change in events, conditions, circumstances or
assumptions underlying such statements, except as required by
law.
Contact: Enstar
Communications
Telephone: +1 (441)
292-3645
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