Enstar eyes 'robust deal pipeline' with $217m stake in Enhanzed Re

Re/insurance group  Enstar has acquired a controlling stake in Enhanzed Re for $217 million, in a move its chief executive Dominic Silvester (pictured) says will provide a "robust deal pipeline" through its partnership with Allianz.

Enhanzed Re is a Bermuda-based Class 4 and Class E reinsurer with approximately $4 billion of assets. The reinsurer also holds life, non-life run-off, and property and casualty reinsurance reserves of approximately $3 billion, primarily sourced from Allianz and Enstar.

Under the deal, one of its wholly owned subsidiaries of Enstar has purchased the entire 27.7 percent interest in Enhanzed Re, which was previously held by an affiliate of investment firm Hillhouse Group, for a purchase price of $217.1 million. This follows Enstar's $470 million investment in Enhanzed Re in December 2018.

Enstar said the purchase price is based on 90 percent of Enhanzed Re’s total shareholders’ equity as of June 30, 2021 and is subject to adjustment to reflect the finalisation of the Enhanzed Re balance sheet as of that date.

With the completion of the purchase, Enstar’s equity interest in the Bermuda-based reinsurer has increased from 47.4 percent to 75.1 percent, with joint venture partner Allianz SE continuing to own the remaining 24.9 percent.

Enstar will consolidate Enhanzed Re in its future financial statements. Additionally, Enstar and Allianz have agreed to post-closing changes in board composition and shareholder rights to reflect Enstar’s substantial majority interest.

Silvester, Enstar’s chief executive officer, said: “ Enstar’s acquisition of a controlling stake in Enhanzed Re strengthens our interest in a well-capitalized entity that provides diversified reinsurance capital, a significant investment portfolio, and a robust deal pipeline through its partnership with Allianz.”

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