Enstar Group Completes Sale Of StarStone US

December 1, 2020 | 0 Comments

Enstar Group has completed the sale and recapitalization of StarStone U.S. Holdings, Inc. through the sale of StarStone U.S to Core Specialty Insurance Holdings, Inc. in exchange for a combination of cash and approximately 25% of the shares in Core Specialty.

“Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions,” a statement from the company said.

“Investors in Core Specialty, including SkyKnight Capital, L.P., Dragoneer Investment Group, Aquiline Capital Partners LLC and other investors, principally management and directors, have committed $610 million in new equity capital.

“Together with the rollover of Enstar’s existing ownership and an additional equity commitment of over $60 million from management and other investors, the equity capitalization of the company will increase to over $900 million.

“In connection with Enstar’s contribution of StarStone U.S. to Core Specialty, one of Enstar’s wholly owned subsidiaries has entered into a combination loss portfolio and adverse development cover reinsurance agreement with respect to StarStone U.S.’ legacy reserves.

“Pursuant to the terms of a recapitalization agreement entered into in August 2020, Enstar will acquire all of Trident V, L.P. and its affiliated funds’ [Trident V Funds] interest in Core Specialty in exchange for the majority of Enstar’s indirect interest in Northshore Holdings Ltd., the holding company for Atrium.

“The exchange transaction is subject to obtaining customary regulatory approvals and closing conditions and is expected to close in the first half of 2021.”

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