Legacy specialist re/insurer Enstar has inked a deal to acquire the remaining 41% of StarStone Specialty.
Enstar has struck a deal to buy the remaining 41% stake in StarStone Specialty from private equity firm Stone Point’s Dowling Partners and Trident fund for $182.3m.
The deal included a $119m cash payment plus the transfer, through its subsidiary Kenmare, of the 13.5% equity holding that run-off specialist Enstar previously held in Northshore, the holding company of Lloyd’s underwriter Atrium.
An SEC filing from Enstar read: “The transaction is expected to be marginally accretive to the company’s book value and settles Trident’s and Dowling’s right to sell their interest in StarStone to Kenmare, which took effect after December 31, 2022.”
In November, Enstar announced its third quarter results, revealing net earnings attributable to ordinary shareholders of $38m. The result represented a rebound to profit from last year’s net loss attributable to Enstar ordinary shareholders of $432m.
Dominic Silvester, Enstar’s CEO, commented at the time, refering to the firm’s legacy deal with AIG for retained exposure to adverse development on Validus Re carried loss reserves.
“We maintained strong operational momentum in the third quarter with our agreement with AIG and ongoing execution of our strategic priorities, while delivering year-to-date growth in book value per share,” he said.
“As we look to the end of 2023, we will rely on our core strengths of scale, claims management experience, and our strong balance sheet to continue providing long-term value,” Silvester added.
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