Bermuda-based insurance consultancy Enstar Group Ltd. agreed to acquire the insurance-holding company SeaBright Holdings Inc. for roughly $249.3 million in cash as it looks to continue its expansion in the U.S.
Bermuda-based Enstar will pay $11.11 a share, a 34% premium to SeaBright’s Monday close. SeaBright is the parent of SeaBright Insurance Co., an underwriter of workers’ compensation insurance, and Paladin Managed Care Services Inc., a provider of managed medical care services. The stock is up about 8% so far this year.
“This transaction will, upon closing, provide our stockholders with immediate liquidity at a price representing a significant premium to market,” said SeaBright Chairman and Chief Executive John G. Pasqualetto.
The companies expect to close the deal in the first quarter.
Enstar said it is in discussions with third-party insurance companies for the assumption of SeaBright’s policy renewals.
Enstar acquires and manages insurance companies and provides management, consultancy and other services to the insurance industry.
Shares of Enstar closed Monday at $94.75 and were inactive premarket. The stock has fallen 3.5% since the start of the year.
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