Enstar acquires unit of BorgWarner

  • Deal agreed: Dominic Silvester, CEO of Enstar Group

    Deal agreed: Dominic Silvester, CEO of Enstar Group


Bermudian-based Enstar Group Ltd has acquired a subsidiary of US industrial company BorgWarner.

For Enstar, which specialises in acquiring insurance companies in run-off, it is the second acquisition of a non-insurance company with historic liabilities.

The Bermudian company, whose head office is in Queen Street, Hamilton, said today that Enstar Holdings (US) LLC had acquired BorgWarner Morse TEC, LLC from BorgWarner Inc.

BorgWarner makes products used in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Morse TEC holds approximately $800 million of liabilities associated with personal injury asbestos claims and environmental claims arising from BorgWarner’s legacy manufacturing operations.

Morse TEC’s assets include, among others, insurance rights related to coverage against these liabilities and cash and marketable securities.

Dominic Silvester, Enstar’s chief executive officer, said: “Enstar continues to provide market-leading legacy solutions for large corporates and their historic liabilities. This is our second acquisition of a non-insurance company and we see a growing potential market here as we expand our business.”

Enstar has about $18.2 billion in assets and says it offers “innovative capital release solutions and specialty underwriting capabilities” through its network of group companies in Bermuda, the US, the UK, continental Europe and Australia.

Enstar’s legacy acquisitions number more than 95 companies and portfolios since the group’s formation in 2001.

Enstar’s active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609.

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Published Oct 31, 2019 at 8:00 am (Updated Oct 31, 2019 at 9:07 am)

Enstar acquires unit of BorgWarner

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