Enstar and Stone Point’s acquisition of Atrium Underwriting Group announced
Atrium Underwriting Group Ltd has been acquired by Enstar Group Limited and Stone Point Capital, who announced they have completed the purchase from Arden Holdings Ltd.
Enstar recently announced its expansion into live underwriting with its acquisitions of Atrium and Arden Reinsurance, and its July 2013 definitive agreement to acquire Torus Insurance Holdings Limited, a transaction that is expected to close in the first quarter of 2014.
Atrium is an underwriting business at Lloyd's of London that manages Syndicate 609 and provides approximately one quarter of the syndicate's capital. It specialises in accident and health, aviation, marine property, non-marine property, professional liability, property and casualty binding authorities, reinsurance, upstream energy, war and terrorism insurance, cargo and fine art.
The announcement stated that the purchaser of Atrium, Alopuc Limited, is indirectly owned 60 percent by an Enstar subsidiary and 40 percent by Trident V, L.P. and its affiliated co-investment funds, which are managed by Stone Point. The purchase price for Atrium was $158.0 million, which was reduced from $183.0 million following the payment of a $25.0 million pre-completion dividend. The purchase price was paid by Enstar and the Trident V funds in accordance with their ownership interests. Enstar's portion of the purchase price was financed by a drawing under its revolving credit facility.
The release also stated that Enstar previously announced that it and the Trident V funds had completed the acquisition of Arden Reinsurance Company Ltd. on September 9, 2013, taking 60 percent and 40 percent interests, respectively. Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to the Atrium group of companies and is currently in the process of running off certain other discontinued businesses.
Enstar, a Bermuda company, acquires and manages insurance and reinsurance companies in run-off and portfolios of insurance and reinsurance business in run-off, and provides management, consultancy and other services to the insurance and reinsurance industry. Stone Point is a financial services-focused private equity firm based in Greenwich, CT. The firm has raised and managed five private equity funds — the Trident Funds — with aggregate committed capital of more than $9 billion.
In addition to the capital invested by the Trident Funds, Stone Point has secured approximately $6 billion of equity co-investments since 2001. Stone Point targets investments in the global financial services industry, including investments in insurance and reinsurance companies, banks and depository institutions, companies that provide outsourced services to financial institutions, asset management firms, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies.
Useful websites: www.stonepoint.com and www.enstargroup.com.