Enstar To Acquire Full Ownership Of KaylaRe

February 5, 2018

Enstar Group has signed an agreement to acquire a further 52% stake in KaylaRe Holdings Ltd., the parent company of KaylaRe Ltd., a Bermuda-based, Class 4 reinsurer.

Added to its existing 48% equity holding, the acquisition will give Enstar full ownership of KaylaRe. Enstar founded KaylaRe in 2016 alongside funds managed by Hillhouse Capital Management, Ltd. and the Trident V funds managed by Stone Point Capital LLC.

In the transaction, valued at approximately $400 million, Hillhouse and Stone Point will exchange their respective 44% and 8% shareholdings in KaylaRe for Enstar shares. Hillhouse will increase its overall economic interest in Enstar from 9.9% to 17.1% and its voting interest from 3.3% to 9.7%.

Stone Point will increase its economic interest from 6.9% to 7.6% and its voting interest from 8.2% to 9.1%. The transaction is subject to regulatory approval and is expected to close during the first quarter of 2018.

KaylaRe aims to deliver superior risk-adjusted returns over market cycles through diversified asset allocation and selective underwriting. The investments managed by Hillhouse have been a key driver of KaylaRe’s profitable performance.

Dominic Silvester, Enstar’s Chief Executive Officer, said: “This transaction allows us to take full ownership of an important reinsurance platform. It will also enhance our group capital position and equity base.

“KaylaRe has exceeded our expectations to date, and as sole owner, we will continue to use it as an integral part of our legacy growth strategy. We look forward to the ongoing support of Hillhouse and Stone Point as key partners and shareholders of Enstar.”

Evercore Group L.L.C. acted as financial advisor to Enstar.

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  1. Stinky D. says:

    I hope there will be no redundancies