StarStone sells MGA Malakite, Zurich portfolio to Dubai MGA Elseco

Specialty insurer StarStone, whose parent company  Enstar dropped plans to pursue its sale in September, has decided to sell some of its portfolio to Dubai-based firm Elseco.

Elseco, a speciality underwriting platform headquartered at the Dubai International Financial Centre (DIFC), has agreed to acquire StarStone's managing general agency (MGA) Malakite Underwriting Partners, and the renewal rights to StarStone’s Zurich-based airlines and products portfolio.

The companies have agreed on a strategic partnership arrangement, where StarStone will continue to provide underwriting capacity to Malakite and the airlines and products book through StarStone Insurance SE, its European platform. To extend support across all elseco speciality lines, including space, aviation, and energy, StarStone will front for selected third-party capacity providers.

Earlier in Sept. 2018, the company abandoned its plan to sell its active underwriting businesses, Atrium and StarStone, a few months after indicated in a filing with the SEC about a potential sale and retaining investment bank Evercore Group to evaluate market interest in acquiring these companies.

StarStone said its latest transaction with Elseco is expected to complete in Q1 2019.

Under the agreement, StarStone’s Zurich airlines & product team, led by head of aviation Richard Etridge, and Malakite’s managing partner, Giles Hussey, will move to elseco. Both will continue to write their existing portfolios under the elseco banner, and as part of the transaction, elseco will set up a presence in Zurich.

“StarStone is undergoing a repositioning of our airlines and products and Middle Eastern business to deliver the very best in customer service and enhance our capabilities in these areas. This new strategic partnership with elseco allows us to leverage elseco’s established market position and strengthen our offering while creating value,” said David Message, StarStone’s group chief underwriting officer.

Laurent Lemaire, founder and CEO of elseco, said: “This signals the start of an exciting partnership with StarStone. There are considerable synergies between our companies, and with this deal all clients will benefit from our extensive in-house capabilities, technology-driven model and broad pool of capacity providers in speciality lines. I look forward to welcoming Giles, Richard and their teams on board.”

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