Enstar Group has signed a definitive agreement to acquire Maiden Reinsurance North America, a subsidiary of Maiden Holdings.
Maiden Re North America is a diversified insurance company domiciled in Missouri that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance.
As part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with Maiden Re North America.
The net consideration payable in the transactions is $307.5m, subject to certain closing adjustments.
Enstar will assume approximately $1.3bn of net loss and loss adjustment expense reserves and unearned premium reserves upon closing.
Enstar, which will operate the business in run-off, expects to finance the purchase price through a combination of cash on hand and borrowings under its revolving credit facility.
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 in the fourth quarter of this year.
Source: Company Press Release.