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Enstar to Acquire Full Ownership of Bermuda Reinsurer KaylaRe
Tuesday 13 February 2018

13 February 2018 - Bermuda-based insurance group Enstar Group Ltd. (NASDAQ: ESGR) has signed an agreement to acquire a further 52% stake in KaylaRe Holdings Ltd., the parent company of Bermuda-based, Class 4 reinsurer KaylaRe Ltd., the company said.

Added to its existing 48% equity holding, the acquisition will give Enstar full ownership of KaylaRe. Enstar founded KaylaRe in 2016 alongside funds managed by Hillhouse Capital Management, Ltd. and the Trident V funds managed by Stone Point Capital LLC.

In the transaction, valued at approximately USD 400m, Hillhouse and Stone Point will exchange their respective 44% and 8% shareholdings in KaylaRe for Enstar shares.

Hillhouse will increase its overall economic interest in Enstar from 9.9% to 17.1% and its voting interest from 3.3% to 9.7%.

Stone Point will increase its economic interest from 6.9% to 7.6% and its voting interest from 8.2% to 9.1%.

The transaction is subject to regulatory approval and is expected to close during the first quarter of 2018.

KaylaRe aims to deliver superior risk-adjusted returns over market cycles through diversified asset allocation and selective underwriting.

The investments managed by Hillhouse have been a key driver of KaylaRe's profitable performance.

Enstar is a multi-faceted insurance group, with over USD 14bn in assets, that offers innovative capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations.

The group's active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd's Syndicate 609.

Evercore Group L.L.C. acted as financial advisor to Enstar.
Date Published: 13/02/2018
Target: KaylaRe Holdings/ a further 52% stake
Country: Bermuda
Deal Size: 400m (USD)
Sector: Insurance
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Vendor: Hillhouse and Stone Point
Buyer: Enstar Group
Buyer Advisor: Evercore Group