Enstar Complete Arden Reinsurance Acquisition
Bermuda-based Enstar Group Limited announced on Monday [Sept 9] that it, together with affiliates of Stone Point Capital LLC, has completed the previously announced acquisition of Arden Reinsurance Company Ltd. from Arden Holdings Ltd.
Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to the Atrium Underwriting group of companies and is currently in the process of running off certain other discontinued businesses.
The purchaser of Arden Reinsurance, Northshore Holdings Limited, is 60% owned by an Enstar subsidiary and 40% owned by funds affiliated with Stone Point. The purchase price for Arden Reinsurance was $79.6 million and was paid by Enstar and Stone Point in accordance with their ownership interests. Enstar’s portion of the purchase price of $47.8 million was financed by a drawing under its revolving credit facility.
As previously announced, Enstar signed definitive agreements with Arden Holdings Ltd. to acquire Arden Reinsurance and Atrium Underwriting Group Ltd. on June 5, 2013. Atrium is an underwriting business at Lloyd’s of London, which manages Syndicate 609 and provides approximately one quarter of the Syndicate’s capital.
The Atrium acquisition remains conditioned on the receipt of regulatory approvals and satisfaction of various customary closing conditions and is expected to close in the fourth quarter of 2013. Enstar and Stone Point will also partner in the Atrium transaction, taking 60% and 40% interests, respectively.
