Bermuda-based Endurance Specialty Holdings Ltd., the parent company of Endurance Specialty Insurance Ltd., announced on Monday that it has purchased the equity interests in Endurance owned by subsidiaries of Zurich Financial Services (ZFS) for a total of $100 million.
ZFS had earlier announced its intention to sell its stake in Endurance, the company it founded together with Aon last December with $1.2 billion initial capital, as part of its effort to raise capital and shed “non-core” assets. ZFS will retain its indirect equity investment in Endurance through Capital Z Financial Services Fund II L.P., in which it is a limited partner.
“The purchase of equity interests was financed through a $100 million drawdown of the three year amortizing term loan portion of a $300 million bank debt facility which Endurance closed on August 13, 2002,” said the announcement.
Endurance Chairman, President, and CEO Kenneth J. LeStrange, commented that, “We are happy to be able to be supportive of the plan that Zurich announced to reduce its exposure to equity investments. Zurich was important to the formation of Endurance and provided significant support during our early days. Zurich has become a large and important reinsurance client and business partner. We look forward to continuing and expanding our business relationship with Zurich.”
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