Bermuda-based Enstar Group has signed an agreement with US-based Blue Cross and Blue Shield to acquire Companion Property and Casualty Insurance Company for around $218m.
Based in South Carolina, Companion is an insurance group writing property, casualty, specialty and workers compensation business.
In addition, the company offers fronting and third party administrative services.
Enstar intends to finance the deal through a combination of cash on hand and debt financing.
Enstar Group CEO Dominic Silvester said: "We are pleased to announce our agreement to acquire Companion, which continues the successful expansion of our property and casualty business in the U.S."
Subject to governmental and regulatory approvals and satisfaction of various customary closing conditions, the transaction is expected to be completed by the end of 2014 fourth quarter.
Enstar plans to integrate the acquired business in its property and casualty legacy business, in order to provide better services to the firm’s policyholders.
The company, along with its Torus subsidiaries, are also evaluating possibilities for policy renewals of certain Companion business into Torus.
Enstar Group and its operating subsidiaries, through a network of service companies, manage various insurance businesses in Bermuda, the US, the UK, Continental Europe and Australia.
Since 2001, the company has acquired around 60 companies and portfolios.
The firm’s active underwriting businesses include the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609 and the Torus group of companies.
Image: Enstar to acquire Companion Property and Casualty Insurance from Blue Cross and Blue Shield. Photo: courtesy of stockimages/ FreeDigitalPhotos.net.