Bermuda–based insurance group Enstar Group has agreed to the US$955m triple acquisition of underwriters Torus Insurance, Atrium Underwriting Group and Arden Reinsurance Company.
In June, Enstar announced that it had agreed to buy Lloyd’s of London…
Bermuda–based insurance group Enstar Group has agreed to the US$955m triple acquisition of underwriters Torus Insurance, Atrium Underwriting Group and Arden Reinsurance Company.
In June, Enstar announced that it had agreed to buy Lloyd’s of London underwriter Atrium for US$183m and Bermuda-based Arden Reinsurance for approximately US$79.6m.
The company then quickly followed this up a month later by announcing the purchase of global specialty insurer Torus Insurance Holdings from its private equity owners for US$692m. Torus is the holding company of six wholly-owned insurance vehicles, including one Lloyd’s syndicate.
To fund that deal, Enstar is issuing 1.9 million ordinary and 711,00 preferred shares worth approximately US$346m. The company will then contribute US$69m in cash, while private equity fund Stone Point Capital will fund the remainder through an equity co-investment. Stone Point is also providing US$106m towards the purchases of Atrium and Arden.
On completion, Enstar will own 60% and Stone Point 40% of the acquisitions.
Both Atrium and Torus have space underwriting teams and it is unclear whether the two will continue to function separately after the merger is complete, which is expected to take place by the end of the year.
Atrium’s is via its Atrium Space Insurance Consortium, which underwrites space insurance via the Lloyd’s 609 syndicate. David Wade is the company’s main underwriter, with David Hoffer senior satellite analyst.
Torus’ space business states that it that has a launch and in-orbit capacity of US$15m and a third party liability of US$50m. It is run by ex-Sciemus directors Sima Adhya and Mike Thorp.
Arden Reinsurance provides reinsurance to Atrium.
Lancashire increases space business with Cathedral purchase
Lloyd’s of London reinsurer Cathedral Capital has been acquired by underwriter Lancashire Holdings for approximately £266m in cash.
Cathedral, which specialises in property, aviation and satellite and marine cargo coverage, was previously owned by private equity firm Alchemy Partners and its management. The purchase price represents a multiple of 1.6 times Cathedral’s net tangible assets as of 31 March 2013.
Cathedral underwrites satellite policies via its Syndicate 2010. For 2013, the syndicate has an underwriting capacity of £350m and around 20% of its coverage is dedicated to aviation & satellite placements. Its satellite business is written primarily through SATEC.
Based in Bermuda and London, Lancashire focuses on short-tail lines of insurance, principally aviation, energy, marine and property. It does provide some satellite coverage but it represents only about 4% of its total business. However, the company recently offered a new launch/extended orbit coverage which it hopes will increase its presence.