Enstar to Acquire Maiden Reinsurance North America

September 4, 2018

An Enstar Group subsidiary has agreed to acquire Maiden Reinsurance North America from a subsidiary of Maiden Holdings.

The net consideration payable in the transactions is $307.5 million, subject to certain closing adjustments. Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves upon closing.

Maiden Re North America, domiciled in Missouri, provides property/casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance. As part of the transaction, the Enstar subsidiary will replace and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with Maiden Re North America.

Enstar, which will operate the business in run-off, said it expects to finance the purchase price through a combination of cash on hand and borrowings under its revolving credit facility.

The Enstar-Maiden transaction is expected to close in the fourth quarter of 2018.

The Enstar deal comes days after TransRe said it acquired the exclusive renewal quotation rights to all of Maiden Reinsurance North America’s U.S. treaty customers. That deal did not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust business or its International Insurance Services and Capital Solutions businesses in Europe. Regarding this par of its business, Maiden Holdings said last week that it was in “advanced discussions” regarding the sale of Maiden Reinsurance North America to a third party.

Enstar offers 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 has a history in completing legacy acquisitions, having acquired more than 80 companies and portfolios since its formation in 2001.

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