Decision based on “favourable market conditions”

The Bermuda-based, reinsurance and run-off group, Enstar, has confirmed it is mulling the sale its two active underwriting businesses, Atrium and StarStone.  


Enstar indicated in an SEC filing that it was encouraged to investigate selling its Atrium Underwriting and StarStone businesses.

The company said it and fellow investor Stone Point Capital reached a decision to engage investment bankers given their perception of “favourable market conditions”.

Enstar and Stone Point Capital – whose Trident V funds were used in partnership with Enstar to acquire Atrium and StarStone in the first place - also said that they have retained Evercore Group to evaluate market appetite for the sale.

The filing said that the investment bank will be tasked with exploring whether there is interest in Atrium and StarStone at attractive pricing levels.

However, the company said that it cannot predict whether or when any sale of Atrium or StarStone will occur.

In its SEC filing, the company said: “The Company and Stone Point Capital have retained Evercore Group to assist in evaluating market interest regarding the potential sale of the Company’s active underwriting businesses, Atrium and StarStone.

“The Company and Stone Point reached the decision to engage Evercore in light of their favorable perception of market conditions, following several other recent transactions in the industry, and will explore whether there is interest in these businesses at attractive pricing levels.

“The Company partnered with the Trident V funds (managed by Stone Point) in the initial acquisitions of its active underwriting businesses.”