Partnership Formed To Invest In Enhanzed Re

December 13, 2018

Enstar Group has entered into a joint venture to invest in Enhanzed Reinsurance Ltd., a Bermuda-based Class 4 and Class E reinsurer. Enhanzed Re will reinsure life, non-life run-off, and property and casualty insurance business, initially sourced from Allianz SE and Enstar.

Enstar, Allianz and Hillhouse affiliates have made equity investment commitments in aggregate of $470 million to Enhanzed Re. Enstar will own 47.4% of the entity, with Allianz owning 24.9%, and an affiliate of Hillhouse Capital Management Ltd. owning 27.7%.

Enstar will act as the [re]insurance manager for Enhanzed Re. Hillhouse will act as primary investment manager and an affiliate of Allianz will also provide investment management services.

Enhanzed Re intends to write business from affiliates of its operating sponsors, Allianz and Enstar. It will seek to underwrite business to maximize diversification by risk and geography.

Dominic Silvester, Enstar’s Chief Executive Officer, said, “Enhanzed Re brings Enstar together with our established partners Allianzand Hillhouse to provide a vehicle that will reinsure a diversified book of life and P&C reserves sourced through a strong pipeline of opportunities provided by Enhanzed Re’s operating sponsors.

“Enhanzed Re will benefit from world-class investment managers prudently managing capital while pursuing risk-adjusted returns. Through Enhanzed Re, Enstar gains exposure to attractive life and P&C business and in return can offer opportunities for Enhanzed Re to participate in our future significant legacy transactions. We look forward to working with our co-investors, Allianz and Hillhouse, in building this business.”

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