Bermuda based insurance, reinsurance, run-off and legacy transaction specialist Enstar Group Limited has announced that it has entered into an agreement to acquire Maiden Re North America from a subsidiary of Maiden Holdings for a total consideration of $307.5 million.
Domiciled in Missouri, Maiden Re North America is a diversified insurance company that provides property and casualty (P&C) treaty reinsurance, casualty facultative reinsurance, and accident and health (A&H) treaty reinsurance.
Enstar will operate the business in run-off, assuming approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves upon closing.
The transaction will be funded through a combination of cash on hand and borrowings under Enstar’s revolving credit facility, and is expected to be completed during the fourth quarter of 2018, subject to customary closing conditions.
Enstar will acquire Maiden Re North America through one of its wholly owned subsidiaries, which will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurers, including certain reinsurance agreements with Maiden Re North America.
Maiden Holdings confirmed that it was in advanced discussions regarding the sale of Maiden Re North America earlier this week when it announced the sale of its U.S treaty reinsurance business renewal rights to TransRe.
