Enstar Group Buys Clarendon Insurance

December 22, 2010

Bermuda-based Enstar Group Ltd will purchase Clarendon Insurance Group, Inc., New York, from Hannover Re for a purchase price in the order of $200 million.

“With the sale of Clarendon we are parting with a subsidiary that has been in run-off since 2005 and thereby freeing up resources that can be used to further grow our core business”, Chief Executive Officer Ulrich Wallin explained.

Hannover Re had already parted with its active US primary insurance business in 2006 through the sale of Praetorian, for which it obtained a purchase price of $800 million at that time.

In terms of Group net income, it remains Hannover Re’s expectation that a post-tax profit of more than EUR 700 million can be generated for 2010.

The transaction is still subject to customary regulatory approvals. The closing is anticipated in the second quarter of 2011. J.P. Morgan Securities acted as exclusive financial advisor to Hannover Re on this transaction.

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