Enstar shutters Enhanzed Re JV with Allianz, zeroes out cat exposure

Bermuda-based re/insurance group  Enstar will shut down Enhanzed Re, its reinsurance joint venture with Germany’s  Allianz, a move that should put paid to its catastrophe exposure for major gain to existing book value.

Sides have agreed to substitute or replace all of the existing reinsurance contacts written by Enhanzed Re save for one deal on Allianz group annuities which sides will shuffle on to a new buyer. Enstar will additionally pay off $70 million in Enhanzed Re’s subordinated debt before sides divvy up the lingering equity.

“The transactions will eliminate Enstar's direct exposure to catastrophe business,” management wrote.

The deal should additionally render a roughly $62 million increase in Enstar's book value, some $3.57 per share, even ahead of the benefit from any eventual sale of the lingering Allianz annuity reinsurance book.

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