- KaylaRe Brings Together Leading
Insurance Management and Investment Management Capabilities
- Significant Investments From Enstar,
Hillhouse and Stone Point
- Nick Packer Appointed as KaylaRe's
Chief Executive Officer
- Enstar and StarStone Announce
Management Changes
HAMILTON, Bermuda, Dec. 15, 2016 (GLOBE NEWSWIRE)
-- 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.