Enstar Group Limited in Bermuda said Tuesday it has entered into a definitive agreement to acquire Companion Property and Casualty Insurance Company from Blue Cross and Blue Shield of South Carolina.
The total consideration for the transaction will be $218 million, according to the announcement.
Companion is a Columbia, South Carolina-based insurance group and it’s been part of Blue Cross and Blue Shield of South Carolina as a subsidiary since 1984. It writes property, casualty, specialty and workers’ compensation business, and has also provided fronting and third party administrative services.
Patti Embry-Tautenhan, a spokesperson for Blue Cross and Blue Shield of South Carolina, told Insurance Journal that Companion has some 200 employees, including 170 in South Carolina. She said Enstar is expected to maintain some portions of the existing workforce while some jobs may be restructured. She said Blue Cross and Blue Shield of South Carolina decided to sell Companion because the property/casualty insurance business doesn’t fit within Blue Cross and Blue Shield’s growth plans.
Enstar said it expects to finance the purchase price through a combination of cash on hand and debt financing. Completion of the transaction is conditioned on, among other things, governmental and regulatory approvals and satisfaction of various customary closing conditions. The transaction is expected to close by the end of the fourth quarter of 2014.
“We are pleased to announce our agreement to acquire Companion, which continues the successful expansion of our property and casualty business in the U.S.” Enstar’s CEO Dominic Silvester said in a statement.
Enstar said it expects to operate the business largely as part of its property and casualty legacy business, while working with Companion to continue to serve its policyholders. Enstar and its Torus subsidiaries are assessing opportunities for policy renewals of certain Companion business into Torus.
Enstar Group and its operating subsidiaries acquire and manage diversified insurance businesses through a network of service companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar is active in completing legacy acquisitions, having acquired over 60 companies and portfolios since its formation in 2001. Enstar’s active underwriting businesses include the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609, and the Torus group of companies.
Source: Enstar Group Limited, Blue Cross and Blue Shield of South Carolina
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