Bermuda based insurance, reinsurance and run-off specialist Enstar Group has announced a $120m agreement to sell its Pavonia Holdings (US), Inc. subsidiary to an affiliate of Global Bankers Insurance Group for $120 million.
Enstar originally acquired the Pavonia business, which includes Pavonia Life Insurance Company of Michigan, Pavonia Life Insurance Company of New York, and Enstar Life (US), Inc., from HSBC Finance in 2013.
The acquirer, Global Bankers Insurance Group, is the insurance and reinsurance group of companies of Eli Global, LLC, an annuity and life focused group of businesses.
Dominic Silvester, Enstar’s Chief Executive Officer, commented on the announcement; “Since acquiring the business in 2013, we have put in place improved processes and effective systems that have driven solid contributions to Enstar and have significantly enhanced the value of Pavonia. Our decision to sell this valuable business to a strong and capable investor is a testament to the efforts of the Pavonia team under our leadership.”
“Signing this transaction is yet another significant milestone in the execution of our strategy,” explained George Luecke, Vice Chairman and Co-Chief Executive Officer of Global Bankers. “Pavonia’s long duration liabilities, particularly structured settlements, fit well with our investment capabilities, and its talented staff and efficient platform will enhance our operational capacity. Underscoring our commitment to the life and annuity sector, this deal when closed will mark our sixth and largest insurance company acquisition since 2014.”
The deal is a good example of Enstar capitalising on its ability to acquire insurance books and businesses in order to turn around their fortunes and sell them on. This also enables the firm to better balance its portfolio of businesses and free up capital for use in other large legacy and reinsurance type deals.
