Enstar Group Limited (ESGR) and Stone Point Capital announced that they had completed the previously announced acquisition of Atrium Underwriting Group Ltd. from Arden Holdings Ltd.
Atrium is an underwriting business at Lloyd’s of London that manages Syndicate 609 and provides approximately one quarter of the syndicate’s capital. Atrium specializes in accident and health, aviation, marine property, non-marine property, professional liability, property and casualty binding authorities, reinsurance, upstream energy, war and terrorism insurance, cargo and fine art.
The purchaser of Atrium, Alopuc Limited, is indirectly owned 60% by an Enstar subsidiary and 40% by Trident V, L.P. and its affiliated co-investment funds, which are managed by Stone Point. The purchase price for Atrium was $158.0 million, which was reduced from $183.0 million following the payment of a $25.0 million pre-completion dividend.
The purchase price was paid by Enstar and the Trident V funds in accordance with their ownership interests. Enstar’s portion of the purchase price was financed by a drawing under its revolving credit facility.
Enstar previously announced that it and the Trident V funds had completed the acquisition of Arden Reinsurance Company Ltd. on September 9, 2013, taking 60% and 40% interests, respectively. Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to the Atrium group of companies and is currently in the process of running off certain other discontinued businesses.