Enstar mulls 'strategic options' for StarStone International

Bermuda-based insurance group Enstar is evaluating "strategic options" for specialist insurer StarStone’s international business after placing its non-US international operations into an orderly run-off.

The legacy specialist said that the decision followed a "strategic review" of the StarStone reporting segment.

The company stated that steps to reduce the size of the StarStone international operations "will begin immediately and will involve several phases". The liabilities associated with the StarStone International run-off will vary in duration, and the run-off is expected to occur over a number of years.

"Appropriate operations will remain in place to serve the needs of policyholders and ensure that the companies continue to meet all regulatory requirements," Enstar said in a US Securities and Exchange (SEC) filing.

As a result, Enstar cannot anticipate with certainty the expected completion date of the StarStone International run-off.

The company previously announced that StarStone had contributed renewal rights related to its international operations to Syndicate 609, which is managed by Atrium Underwriters.

Enstar recently agreed a deal to recapitalise StarStone US with $610 million fundraising led by private equity firms SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners.

Following the recapitalisation, AM Best placed the financial strength ratings (FSR) of StarStone Insurance Bermuda and its subsidiaries under review with negative implications.