Barmuda-based Enstar Group has said that through one of its wholly-owned subsidiaries, it has entered into a definitive agreement for the acquisition of Clarendon National Insurance from Clarendon Insurance Group, the US-based property and casualty subsidiary of Hannover Re.
According to Enstar, the purchase price is $200m and is expected to be financed in part by a bank loan facility to be finalized before closing and in part from cash on hand.
Hannover Re CEO Ulrich Wallin said that with the sale of Clarendon the company is parting with a subsidiary that has been in run-off since 2005 and thereby freeing up resources that can be used to further grow core business.
Completion of the transaction is subject to regulatory approval and satisfaction of various customary closing conditions. The transaction is expected to close in the second quarter of 2011.
Enstar is a Bermuda-based company which acquires and manages insurance and reinsurance companies in run-off and provides management, consultancy and other services to the insurance and reinsurance industry.