Enstar, Stone Point and Dowling funds are expected to receive a consideration of $30m in the form of Inigo shares upon closing


Enstar, Stone Point to sell Starstone’s business. (Credit: Gerd Altmann from Pixabay.)

Enstar and Stone Point Capital have agreed to divest StarStone Underwriting Limited (SUL), the Lloyd’s managing agency, along with the right to operate Lloyd’s Syndicate 1301, to a new speciality re/insurance firm Inigo.

Inigo operates as a Lloyd’s speciality insurer, writing a portfolio of insurance and reinsurance risks and will receive certain transitional services and staff from Enstar.

As part of the agreement, Enstar, Stone Point and Dowling funds will receive a consideration of $30m in the form of Inigo shares upon closing.

Enstar chief executive officer Dominic Silvester said: “This transaction optimises and capitalises on StarStone International’s assets at Lloyd’s and provides an opportunity to participate in a new venture with proven leadership at a time of favourable market conditions.

“This is a positive outcome for SUL, and we look forward to working with the Inigo management team as they launch this new business.”

In relation with the sale of SUL, Enstar and Stone Point are committed to investing up to $27m and $18m, respectively into the new firm Inigo.

The investment is expected to close in late 2020 and the sale of SUL is expected in the first half of 2021, subject to regulatory approvals and satisfaction of customary conditions.

As part of the transaction, Enstar, Stone Point and Dowling Capital would retain the economics of Syndicate 1301’s underwriting portfolios, as the business runs off.

The sale of SUL follows the previous announcement by Enstar and Stone Point to ensure orderly run-off of StarStone’s International business and review of strategic alternatives.

Furthermore, Enstar and Stone Point recently agreed to renew rights for StarStone’s European Financial Lines business, along with the sale of StarStone’s Belgian-based underwriting agent Vander Haeghen.

Enstar is an insurance firm offering advanced capital release solutions through its network of group companies in Bermuda, the US, the UK, Europe, Australia, and other locations.

Stone Point Capital is a financial services-focused private equity firm that raised and managed eight private equity funds, with aggregate committed capital of more than $25bn.