Enstar to Acquire Full Ownership of KaylaRe
February 05 2018 - 9:00AM
Enstar Group Limited (Nasdaq:ESGR) today announced that it has
signed an agreement to acquire a further 52% stake in KaylaRe
Holdings Ltd. (“KaylaRe”), the parent company of KaylaRe Ltd., a
Bermuda-based, Class 4 reinsurer. Added to its existing 48% equity
holding, the acquisition will give Enstar full ownership of
KaylaRe. Enstar founded KaylaRe in 2016 alongside funds managed by
Hillhouse Capital Management, Ltd. (“Hillhouse”) and the Trident V
funds managed by Stone Point Capital LLC (“Stone Point”).
In the transaction, valued at approximately $400 million,
Hillhouse and Stone Point will exchange their respective 44% and 8%
shareholdings in KaylaRe for Enstar shares. Hillhouse will increase
its overall economic interest in Enstar from 9.9% to 17.1% and its
voting interest from 3.3% to 9.7%. Stone Point will increase its
economic interest from 6.9% to 7.6% and its voting interest from
8.2% to 9.1%. The transaction is subject to regulatory approval and
is expected to close during the first quarter of 2018.
KaylaRe aims to deliver superior risk-adjusted returns over
market cycles through diversified asset allocation and selective
underwriting. The investments managed by Hillhouse have been a key
driver of KaylaRe’s profitable performance.
Dominic Silvester, Enstar's Chief Executive Officer, said: “This
transaction allows us to take full ownership of an important
reinsurance platform. It will also enhance our group capital
position and equity base. KaylaRe has exceeded our expectations to
date, and as sole owner, we will continue to use it as an integral
part of our legacy growth strategy. We look forward to the ongoing
support of Hillhouse and Stone Point as key partners and
shareholders of Enstar.”
Evercore Group L.L.C. acted as financial advisor to Enstar.
About Enstar
Enstar is a multi-faceted insurance group, with over $14 billion
in assets, 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 80 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.
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
regarding the exchange transaction and the future performance of
KaylaRe. 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, 2016 and in Enstar’s Form 10-Q for the
nine months ended September 30, 2017, 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: Guy BowkerTelephone: +1-441-292-3645
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