Enstar Group has entered into a joint venture agreement with Allianz and Hillhouse Capital Management (Hillhouse) to invest $470m in Enhanzed Reinsurance (Enhanzed Re).
Enhanzed Re is a Bermuda-based Class 4 and Class E reinsurer. It will reinsure life, non-life run-off, and property and casualty insurance business, initially sourced from Allianz and Enstar.
Enstar will have 47.4% interest in the joint venture, while Allianz and Hillhouse will own 24.9% and 27.7% stakes, respectively.
Enstar will provide (re)insurance management services for Enhanzed Re, while Hillhouse will serve as primary investment manager and an Allianz affiliate will also offer investment management services.
Enstar CEO Dominic Silvester said: “Enhanzed Re brings Enstar together with our established partners Allianz and Hillhouse to provide a vehicle that will reinsure a diversified book of life and P&C reserves sourced through a strong pipeline of opportunities provided by Enhanzed Re’s operating sponsors.
“Enhanzed Re will benefit from world-class investment managers prudently managing capital while pursuing risk-adjusted returns.
“Through Enhanzed Re, Enstar gains exposure to attractive life and P&C business and in return can offer opportunities for Enhanzed Re to participate in our future significant legacy transactions. We look forward to working with our co-investors, Allianz and Hillhouse, in building this business.”
In August 2018, Enstar agreed to acquire Maiden Re North America from a subsidiary of Maiden Holdings for $307.5m.
Maiden Re is a Missouri-domiciled company that offers property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance.
As part of the deal, Enstar will assume nearly $1.3bn in net loss and loss adjustment expense reserves and unearned premium reserves upon closing. One of Enstar’s subsidiaries will assume reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with Maiden Re North America.
With more than $15.2bn in assets, Enstar is a multi-faceted insurance group that provides latest capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the US, the UK, Continental Europe and Australia.