Enstar Completes Sale and Recapitalization of StarStone U.S.
November 30 2020 - 6:53PM
Enstar Group Limited (NASDAQ: ESGR) (“Enstar”) today announced that
it has completed the sale and recapitalization of StarStone U.S.
Holdings, Inc. (“StarStone U.S.”) through the sale of StarStone U.S
to Core Specialty Insurance Holdings, Inc. (“Core Specialty”) in
exchange for a combination of cash and approximately 25% of the
shares in Core Specialty. Completion of the transaction followed
receipt of regulatory approvals and satisfaction of various other
closing conditions.
Investors in Core Specialty, including SkyKnight
Capital, L.P., Dragoneer Investment Group, Aquiline Capital
Partners LLC and other investors, principally management and
directors, have committed $610 million in new equity capital.
Together with the rollover of Enstar’s existing ownership and an
additional equity commitment of over $60 million from management
and other investors, the equity capitalization of the company will
increase to over $900 million.
In connection with Enstar’s contribution of
StarStone U.S. to Core Specialty, one of Enstar’s wholly owned
subsidiaries has entered into a combination loss portfolio and
adverse development cover reinsurance agreement with respect to
StarStone U.S.’ legacy reserves.
Pursuant to the terms of a recapitalization
agreement entered into in August 2020, Enstar will acquire all of
Trident V, L.P. and its affiliated funds’ (the “Trident V Funds’”)
interest in Core Specialty in exchange for the majority of Enstar’s
indirect interest in Northshore Holdings Ltd., the holding
company for Atrium. The exchange transaction is subject to
obtaining customary regulatory approvals and closing conditions and
is expected to close in the first half of 2021.
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 Core Specialty
Core Specialty offers a diversified range of
property and casualty insurance products for small to mid-sized
businesses. From eight underwriting offices spanning the U.S., the
Company focuses on niche markets, local distribution, and superior
underwriting knowledge, offering traditional as well as innovative
insurance solutions to meet the needs of its customers and brokers.
Core Specialty is an insurance holding company operating through
StarStone Specialty Insurance Company, a U.S. excess and surplus
lines insurer, and StarStone National Insurance Company, a U.S.
admitted markets insurer. The Company is rated A- (Excellent) by
A.M. Best. For further information about Core Specialty, please
visit www.corespecialty.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 and the Trident
Funds may not be able to complete the referenced exchange
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. 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 and nine months ended September 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 |
Enstar (NASDAQ:ESGR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Enstar (NASDAQ:ESGR)
Historical Stock Chart
From Apr 2023 to Apr 2024