Enstar to sell Pavonia life business for $120m
Bermuda-based Enstar Group has entered into an agreement to sell its subsidiary Pavonia Holdings for $120 million to an undisclosed affiliate of Global Bankers Insurance Group, the re/insurance group of companies of Eli Global.
The deal is expected to close during the third or fourth quarter of 2017.
Insurance group Enstar originally acquired the Pavonia business from HSBC Finance in 2013. Pavonia owns Pavonia Life Insurance Company of Michigan, Pavonia Life Insurance Company of New York, and Enstar Life.
Dominic Silvester, CEO of Enstar, said: "Since acquiring the business in 2013, we have put in place improved processes and effective systems that have driven solid contributions to Enstar and have significantly enhanced the value of Pavonia.
"Our decision to sell this valuable business to a strong and capable investor is a testament to the efforts of the Pavonia team under our leadership."
George Luecke, vice chairman and co-CEO of Global Bankers, said: "Signing this transaction is yet another significant milestone in the execution of our strategy.
"Pavonia's long duration liabilities, particularly structured settlements, fit well with our investment capabilities, and its talented staff and efficient platform will enhance our operational capacity. Underscoring our commitment to the life and annuity sector, this deal when closed will mark our sixth and largest insurance company acquisition since 2014."
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