Enstar Group Limited
) with Stone Point Capital jointly announced the acquisition of
Atrium Underwriting Group Ltd. from Arden Holdings Ltd for $158
million. Following the declaration, share price of Enstar Group
inched up 1.1% to close at $138.86 on Monday with optimism over
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Atrium is acquired by Alopuc Limited, where a subsidiary of
Enstar Group has 60% stake and Trident V, L.P. and its affiliated
co-investment funds, managed by Stone Point, has the remaining
40% stake. Atrium is an underwriting business at Lloyd's of
London, a specialist insurance market. It offers 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 acquisition was announced on Jun 5, 2013 for a purchase
consideration of $183 million. However, subsequent to the
dividend payment of $25 million, the consideration was reduced by
the same amount. The purchase price was paid by both Enstar Group
and Stone Point based on their ownership proportions. Enstar
funded the payment by a drawing under its revolving credit
Enstar believes that the addition of Atrium's live underwriting
platform will boost development of its own business. Atrium will
add a proficient underwriting and management team to Enstar.
Previously on Sep 9, Enstar Group in partnership with Stone Point
Capital LLC's affiliates had completed the acquisition of Arden
Reinsurance Company Ltd. from Arden Holdings Ltd for $79.6
million. Northshore Holdings Limited, the purchaser of Arden
Reinsurance is indirectly owned 60% by Enstar Group's Subsidiary
and 40% by Stone Point's affiliated funds.
Enstar Group has been continually undertaking acquisitions to
ramp up its inorganic growth profile. In the first nine months of
2013, Enstar Group also completed the acquisition of Arden
Reinsurance, U.S. and Canadian Closed-Life Insurance Operations
from HSBC Finance and SeaBright Holdings Inc. Additionally, the
company will also acquire Torus Insurance Holdings
Among the other multi line insurers following the inorganic
) acquired Field Asset Services when and for how much. The
acquisition will help it expand its presence in restoration,
property preservation and inspection services business.
Enstar Group presently carries a Zacks Rank #3 (Hold). Some
better ranked multi line insurers
Old Republic International Corp.
) with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy), among others, are worth