ENSTAR COMPLETES SALE AND RECAPITALIZATION OF STARSTONE US

Bermuda-based Enstar Group has completed the sale and recapitalization of StarStone US Holdings. Late Monday, Enstar confirmed the sale of StarStone US to Core Specialty Insurance Holdings for a combination of cash and a 25% shareholding in Core Specialty. At the same time, Core Specialty committed to inject $610m in new equity capital into StarStone US. Together with the rollover of Enstar’s existing ownership and an additional equity commitment of over $60m from management and other investors, the level of equity capitalisation rises to over $900m. Concurrently, Enstar is to provide loss portfolio and adverse development reinsurance to cover StarStone US’ legacy reserves. The transaction will also see Core Specialty acquire the majority of Enstar’s indirect interest in Northshore Holdings, the holding company for Lloyd’s insurer Atrium. The transaction is expected to close in the first half of 2021. Last month, Enstar and Stone Point Capital said they have agreed to sell Lloyd’s managing agency StarStone Underwriting to specialty re/insurance startup Inigo.