Enstar To Purchase Two Arden Subsidiaries
Enstar Group Ltd. this week [June 5] signed definitive agreements with Arden Holdings Ltd. to buy Atrium Underwriting Group Ltd. and Arden Reinsurance Company Ltd.
Atrium, an underwriting business at Lloyd’s of London, managing Syndicate 609 and providing nearly one quarter of the syndicate’s capital, specialises in accident and health, aviation, marine property, non-marine property, professional liability, property and casualty binding authorities, reinsurance, upstream energy, war and terrorism insurance, cargo and fine art.
Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to Atrium and is now in the process of running off certain other discontinued businesses.
The acquisition price for Atrium would be around $183 million, while the purchase price for Arden Reinsurance would be some $79.6 million.
Completion of each transaction is conditioned on governmental and regulatory approvals and satisfaction of various customary closing conditions.
The two transactions are governed by separate purchase agreements and the acquisition of each company is not conditioned on the acquisition of the other. Both transactions may close by the end of the fourth quarter of 2013.
Enstar, a Bermuda company, buys and manages insurance and reinsurance companies in run-off and portfolios of insurance and reinsurance business in run-off, and provides management, consultancy and other services to the insurance and reinsurance industry.
