Enstar completes the acquisition of a majority stake in
HAMILTON, Bermuda, Sep 01, 2021 (GLOBE NEWSWIRE) – Enstar Group Limited (NASDAQ: ESGR) today announced that one of its wholly-owned subsidiaries has completed the purchase of its entire stake in 27, 7% in Enhanzed Reinsurance Ltd. (“Enhanzed Re”) previously owned by a subsidiary of Hillhouse Group. Purchase price of $ 217.1 million is based on 90% of total equity of Enhanzed Re as of June 30, 2021 and is subject to adjustment to reflect the finalization of Enhanzed Re’s balance sheet at that date.
With the completion of the purchase, Enstar’s stake in the Bermuda-based reinsurer increased from 47.4% to 75.1%, with joint venture partner Allianz SE (“Allianz”) continuing to hold the shares. 24.9% remaining.
Enhanzed Re, which Enstar will consolidate in its future financial statements, has approximately $ 4.0 billion in assets. The reinsurer also holds life, non-life and property and casualty reinsurance reserves of approximately $ 3.0 billion, primarily from Allianz and Enstar.
Enstar and Allianz have agreed to modify the composition of the board of directors and the rights of the shareholders after the close to reflect the substantial majority stake in Enstar. Completion of the transaction followed the receipt of regulatory approval and the satisfaction of various other closing conditions.
Dominic Silvester, CEO of Enstar, said: “Enstar’s acquisition of a controlling stake in Enhanzed Re strengthens our interest in a well-capitalized entity that provides diversified reinsurance capital, a significant investment portfolio and a strong transaction pipeline through its partnership with Allianz. . “
Enstar is a leading global NASDAQ-listed insurance group providing innovative capital release solutions through its network of group companies in Bermuda, United States, United Kingdom, Continental Europe, Australia and in other international sites. A market leader in real estate acquisitions, Enstar has acquired more than 100 companies and portfolios since its inception in 2001. For more information on Enstar, see www.enstargroup.com.
Caution regarding forward-looking statements
This press release contains forward-looking statements. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that these forward-looking statements speak only as of the date on which they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in forward-looking statements as a result of various factors. Significant risk factors relating to Enstar can be found under the heading “Risk Factors” in Enstar’s Form 10-K for the year ended December 31, 2020 and in Enstar’s Form 10-Q for the three months. ended June 30, 2021 and are incorporated herein by reference. Further, Enstar makes no commitment to update any written or oral forward-looking statements or to publicly announce any update or revision to any of the forward-looking statements contained herein, to reflect any change in its expectations. in this regard or as a result of new information, future developments or otherwise, except as required by law.
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