Enstar Group to acquire Atrium Underwriting
Enstar Group, a Bermuda company that acquires and manages insurance and reinsurance companies in run-off, has agreed to acquire Atrium Underwriting Group and Arden Reinsurance Company.
The purchase price for Atrium will be approximately $183m and the purchase price for Arden Reinsurance some $79.6m. The two transactions are governed by separate purchase agreements and the acquisition of each company is not conditioned on the acquisition of the other. Both transactions are expected to close by the end of the fourth quarter of 2013.
Atrium is an underwriting business at Lloyd's of London, which 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.
Arden Reinsurance is a Bermuda-based company that provides reinsurance to Atrium and is currently in the process of running off certain other discontinued businesses.
"The acquisition of Atrium's 'live' underwriting platform will represent a further evolution of Enstar's business,” said Dominic Silvester, Enstar's chief executive.
“Our core focus remains on acquiring insurance and reinsurance companies that are in run-off, however we believe Atrium will provide us with a high quality operation at Lloyd's that includes a skilled underwriting and management team that will help create new opportunities for us to grow and prosper."
Steve Cook, chief executive Officer of Atrium, said: "We are delighted to be able to play a key role in Enstar's strategic expansion into the 'live' underwriting environment. Atrium intends to continue its existing strategy and plans under Enstar's ownership whilst evaluating opportunities that may arise from Enstar's future acquisitions. Atrium believes it has found a culturally compatible and financially secure strategic owner."
