Enstar To Sell Pavonia To Global Bankers
Enstar Group Limited has entered into an agreement to sell its subsidiary Pavonia Holdings [US], Inc. for a total purchase price of $120 million to an affiliate of Global Bankers Insurance Group, the insurance and reinsurance group of companies of Eli Global, LLC.
Pavonia owns Pavonia Life Insurance Company of Michigan, Pavonia Life Insurance Company of New York, and Enstar Life [US], Inc.
Enstar originally acquired the Pavonia business from HSBC Finance in 2013.
Completion of the transaction is subject to regulatory approvals and satisfaction of closing conditions. The transaction is expected to close during the third or fourth quarter of 2017.
Dominic Silvester, Enstar’s Chief Executive Officer, said: “Since acquiring the business in 2013, we have put in place improved processes and effective systems that have driven solid contributions to Enstar and have significantly enhanced the value of Pavonia.
“Our decision to sell this valuable business to a strong and capable investor is a testament to the efforts of the Pavonia team under our leadership.”
“Signing this transaction is yet another significant milestone in the execution of our strategy,” said George Luecke, Vice Chairman and Co-Chief Executive Officer of Global Bankers.
“Pavonia’s long duration liabilities, particularly structured settlements, fit well with our investment capabilities, and its talented staff and efficient platform will enhance our operational capacity.
“Underscoring our commitment to the life and annuity sector, this deal when closed will mark our sixth and largest insurance company acquisition since 2014.”
