HAMILTON, Bermuda, Feb. 17, 2017 (GLOBE NEWSWIRE)
-- Enstar Group Limited (NASDAQ:ESGR) announced today that it has
entered into an agreement to sell its subsidiary Pavonia Holdings
(US), Inc. ("Pavonia") for a total purchase price of $120 million
to an affiliate of Global Bankers Insurance Group ("Global
Bankers"), the insurance and reinsurance group of companies of Eli
Global, LLC.
Pavonia owns Pavonia Life Insurance Company of
Michigan, Pavonia Life Insurance Company of New York, and Enstar
Life (US), Inc. Enstar originally acquired the Pavonia business
from HSBC Finance in 2013.
Completion of the transaction is subject to
regulatory approvals and satisfaction of closing conditions.
The transaction is expected to close during the third or fourth
quarter of 2017.
Dominic Silvester, Enstar's Chief Executive
Officer, said: "Since acquiring the business in 2013, we have put
in place improved processes and effective systems that have driven
solid contributions to Enstar and have significantly enhanced the
value of Pavonia. Our decision to sell this valuable business
to a strong and capable investor is a testament to the efforts of
the Pavonia team under our leadership."
"Signing this transaction is yet another
significant milestone in the execution of our strategy," said
George Luecke, Vice Chairman and Co-Chief Executive Officer of
Global Bankers. "Pavonia's long duration liabilities, particularly
structured settlements, fit well with our investment capabilities,
and its talented staff and efficient platform will enhance our
operational capacity. Underscoring our commitment to the life and
annuity sector, this deal when closed will mark our sixth and
largest insurance company acquisition since 2014."
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 over 75
companies and portfolios since its formation in 2001, and has over
$12 billion in total assets. 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 Eli
Global & Global
Bankers
Global Bankers Insurance Group is a family of
insurance and reinsurance companies, focused on Life Insurance and
Annuities. Its members include Bankers Life Insurance Company,
Colorado Bankers Life Insurance Company, and Southland National
Insurance Corporation. Global Bankers Insurance Group is part of
the privately-held Eli Global federation of autonomous businesses
serving a diversified range of industries including insurance,
financial services, healthcare services, revenue cycle management,
information technology, marketing and sales, publishing,
distribution, market research, and business information.
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.