25 November 2013 Insurance

Enstar and Stone Point Capital complete Atrium acquisition

Enstar Group, the Bermuda-based company that acquires and manages insurance and reinsurance companies in run-off and Stone Point Capital, a financial services-focused private equity firm, have completed the previously announced acquisition of Atrium Underwriting Group from Arden Holdings.

Atrium is an underwriting business at Lloyd's of London that manages Syndicate 609 and provides approximately one quarter of the syndicate's capital. Atrium specialises in accident and health, aviation, marine property, non-marine property, professional liability, property and casualty binding authorities, reinsurance, upstream energy, war and terrorism insurance, cargo and fine art.

The purchaser of Atrium, Alopuc, is indirectly owned 60 percent by an Enstar subsidiary and 40 percent by Trident V, L.P. and its affiliated co-investment funds, which are managed by Stone Point. The purchase price for Atrium was $158 million, which was reduced from $183 million following the payment of a $25 million pre-completion dividend. The purchase price was paid by Enstar and the Trident V funds in accordance with their ownership interests. Enstar's portion of the purchase price was financed by a drawing under its revolving credit facility.

Enstar previously announced that it and the Trident V funds had completed the acquisition of Arden Reinsurance Company on September 9, 2013, taking 60 percent and 40 percent interests, respectively. Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to the Atrium group of companies and is currently in the process of running off certain other discontinued businesses.

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