Enstar Group Limited (NASDAQ:ESGR) (“Enstar”) announced today the
launch of KaylaRe Ltd. (“KaylaRe”), a Bermuda-based, Class 4
reinsurer offering a diversified range of specialty reinsurance to
the global insurance market.
KaylaRe launches with initial capital of $620 million, backed by
a $300 million investment from Enstar; $270 million from funds
managed by Hillhouse Capital Management, Ltd., a leading global
investment manager with over $25 billion in assets under management
(“Hillhouse”); and $50 million from funds managed by Stone Point
Capital LLC, a financial services-focused private equity firm with
aggregate committed capital of approximately $13 billion (“Stone
Point”).
KaylaRe aims to deliver superior risk-adjusted returns over
market cycles through a diversified asset allocation and selective
underwriting. KaylaRe has entered into a 35% quota share agreement
with StarStone, Enstar’s global underwriting subsidiary, and loss
portfolio transfer agreements with Enstar for certain legacy
business. Over time, KaylaRe expects to develop and
opportunistically write third-party premium, and to participate in
certain future Enstar legacy transactions.
Enstar and Hillhouse will act as the exclusive reinsurance
manager and the primary investment manager to KaylaRe,
respectively. KaylaRe will also engage other investment
managers.
In connection with the launch of KaylaRe, Nick
Packer, a co-founder of Enstar, has been
appointed Chief Executive Officer of KaylaRe. Packer brings nearly
30 years of industry experience to KaylaRe. He has served as
Enstar’s Executive Vice President and Joint Chief Operating Officer
since 2001 and StarStone’s Executive Chairman and Chief Executive
Officer since 2014. Packer will remain on the StarStone board as a
non-executive director.
Dominic Silvester, Enstar’s Chief Executive Officer, said,
“KaylaRe brings Enstar together with partners Hillhouse and Stone
Point to create a unique global reinsurer. KaylaRe has great
performance potential, and a dynamic and proven leader in Nick
Packer, who has been a core contributor to Enstar’s growth and
success. He has shown tremendous commitment to our investment in
KaylaRe, and, while he will be greatly missed at Enstar, I look
forward to working closely with him in his new role.”
Nick Packer said, “KaylaRe is a differentiated total return
reinsurer, and it is an honour to lead this company from its
inception. Through Enstar, we have long-term access to a
high-quality, diversified portfolio of low volatility specialty
insurance risks and supporting infrastructure. Further, the
additional investment and support of Hillhouse and Stone Point
provide KaylaRe with the capability to create substantial
incremental value for shareholders through market cycles.”
With the launch of KaylaRe, Enstar is also today announcing
several management changes, effectively immediately:
Paul O’Shea has been named as President of
Enstar and Executive Chairman of StarStone. O’Shea, a co-founder of
Enstar, has served as Executive Vice President and Joint-Chief
Operating Officer and a member of Enstar’s Board of Directors since
2001, and he has been primarily responsible for mergers and
acquisitions at the company.
Orla Gregory has been appointed Chief Operating
Officer of Enstar. Gregory has served as Chief Integration Officer
since 2015. Previously, she served as Executive Vice President,
Mergers and Acquisitions, and has held various other senior roles
in her 13-year career with Enstar.
Paul Brockman and David Atkins
will take on broader responsibility for Enstar’s core insurance and
legacy activity, including oversight of claims, commutations, and
ceded reinsurance. Brockman, Chief Executive Officer of Enstar US,
joined Enstar in 2012 and previously served as US President and
Chief Operating Officer and Head of Commutations. Atkins, Chief
Executive Officer of Enstar EU and Global Head of Claims, has been
with Enstar since 2003.
Demian Smith has been named Group Chief
Executive Officer of StarStone. Smith most recently served as CEO
of StarStone’s International segment and Chairman of its
underwriting committee. Additionally, David
Message has been named Chief Underwriting Officer of
StarStone.
Mr. Silvester said, “I am pleased to announce these appointments
today, which signal the robust capabilities, diverse industry
experience and collective strength of Enstar’s leadership team. I
look forward to working with this talented group as we lead Enstar
toward further growth and success.”
About Enstar
Enstar is a multi-faceted insurance group that offers innovative
capital release solutions and specialty underwriting capabilities
through its network of group companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. Enstar is a market leader in
completing legacy acquisitions, having acquired 75 companies and
portfolios since its 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. For further information about Enstar,
see www.enstargroup.com.
About KaylaRe
KaylaRe Ltd. is a Bermuda-based reinsurer offering a diversified
range of specialty reinsurance solutions to the global insurance
market. Launched in December 2016 with $620 million of capital,
KaylaRe is a registered Class 4 Insurer with the Bermuda Monetary
Authority, and a wholly-owned subsidiary of KaylaRe Holdings Ltd.
KaylaRe sources reinsurance business primarily from Enstar and its
subsidiaries. Through Enstar, KaylaRe has long-term access to a
high-quality, diversified portfolio of low volatility specialty
insurance risks and supporting infrastructure. KaylaRe’s invested
assets are managed by a select group of established global
investment managers including Hillhouse Capital Management,
Ltd.
About Hillhouse
Hillhouse Capital Management, Ltd. is a leading investment
management firm. Founded by Lei Zhang in 2005, Hillhouse invests
with a long-term time horizon and employs a fundamental, bottom-up
approach. Independent proprietary research is key to its investment
process. Hillhouse focuses on the consumer, TMT, industrials and
healthcare sectors and invests in companies across all equity
stages. Hillhouse manages capital for institutional clients such as
university endowments, foundations, sovereign wealth funds,
pensions and family offices.
About Stone Point
Stone Point Capital LLC is a financial services-focused private
equity firm based in Greenwich, CT. The firm has raised and managed
six private equity funds – the Trident Funds – with aggregate
committed capital of approximately $13 billion. Stone Point targets
investments in the global financial services industry, including
investments in companies that provide outsourced services to
financial institutions, banks and depository institutions, asset
management firms, insurance and reinsurance companies, insurance
distribution and other insurance-related businesses, specialty
lending and other credit opportunities, mortgage services companies
and employee benefits and healthcare companies. For further
information about Stone Point, see www.stonepoint.com.
Cautionary Statement
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements include statements regarding the intent,
belief or current expectations of Enstar and its management team.
Investors are cautioned that any such forward-looking statements
speak only as of the date 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 the
forward-looking statements as a result of various factors.
Important risk factors regarding Enstar can be found under the
heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2015 and Form 10-Q for the quarterly period ended
September 30, 2016, and are incorporated herein by reference.
Furthermore, Enstar undertakes no obligation to update any written
or oral forward-looking statements or publicly announce any updates
or revisions to any of the forward-looking statements contained
herein, to reflect any change in its expectations with regard
thereto or any change in events, conditions, circumstances or
assumptions underlying such statements, except as required by
law.
Contact: Mark Smith
Telephone: +1 (441) 292-3645
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