Enstar Is New Transatlantic Suitor
Bermuda-based reinsurer Transatlantic Holdings Inc.,which has been at the centre of a months-long buyout battle, this week began negotiations with a fourth, unnamed suitor.
A source familiar with the talks has told the Reuter news agency the new bidder is Bermuda-based Enstar Group, which buys insurers that are no longer writing new business. Insurers in “run-off” only manage existing policies, collecting premiums and paying claims.
The industry trade website “Insurance Insider” had previously speculated Enstar was bidding with the backing of one of its largest shareholders, hedge fund manager J. Christopher Flowers.
Earlier this year, Enstar raised capital by selling nearly a 20 percent economic interest in itself to Goldman Sachs’ private equity arm GS Capital Partners. Goldman is also the financial adviser to Transatlantic in its sale process.
Transatlantic is already in discussions with Bermuda’s Validus Holdings Ltd., Berkshire Hathaway unit National Indemnity Co and a third undnamed party.
