Maiden sells US unit to Enstar for $307.5m

  • Deal struck: Enstar has agreed to buy Maiden Holdings' US reinsurance unit in a $307.5 million deal

    Deal struck: Enstar has agreed to buy Maiden Holdings' US reinsurance unit in a $307.5 million deal

Maiden Holdings has sold its US reinsurance unit to a subsidiary of fellow Bermudian company Enstar Group.

Maiden will receive net proceeds of $307.5 million for its Missouri-based subsidiary Maiden Reinsurance North America.

Enstar will operate the business in run-off. On Wednesday, Maiden announced it had sold the business’s reinsurance renewal rights to Transatlantic Re, which was also taking on the unit’s underwriting team.

“Today’s announcement of the sale of MRNA represents another step in our continuing strategic review. This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders,” Lawrence Metz, Maiden’s chief executive officer designate, said.

The transaction is expected to close in the fourth quarter of this year.

Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves from Maiden’s US Diversified business upon closing.

As part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with MRNA.

Patrick Haveron, Maiden’s chief financial officer and chief operating officer designate, said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position.

“We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.”

Maiden’s shares were trading down 1.3 per cent at $3.90 at 2.51pm Bermuda time time today, while Enstar’s shares were down 0.7 per cent at $212.25.

You must be registered or signed-in to post comment or to vote.

Published Aug 31, 2018 at 2:54 pm (Updated Aug 31, 2018 at 2:54 pm)

Maiden sells US unit to Enstar for $307.5m

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "What is your view of finance minister Curtis Dickinson's first Budget?"
    • Sensible, balanced approach with no new taxes
    • 14%
    • Disappointing, with lack of public spending cuts
    • 28%
    • Ignores serious long-term debt, healthcare and pension issues
    • 51%
    • Tax increases were unnecessary as the Government needs no more money
    • 7%
    • Total Votes: 4209
    • Poll Archive

    Today's Obituaries

    eMoo Posts