Core Specialty completes recapitalisation of StarStone US

01-12-2020

Core Specialty Insurance Holdings has completed the recapitalisation of StarStone US Holdings. 

The recapitalisation was led by SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners, which between them provided $610 million in new equity capital. 

Enstar Group has received a combination of cash consideration and shares in Core Specialty as part of the recapitalisation. 

The $610 million investment, together with the rollover of Enstar's existing ownership, and an additional equity purchase of over $60 million from management and selected other investors, will increase Core Specialty’s equity capitalisation to over $900 million.

SkyKnight and Dragoneer will each have beneficial ownership of approximately 27 percent of StarStone US, with Enstar owning 25 percent, Aquiline 11 percent, management and directors owning 6 percent and other investors holding 4 percent.

In conjunction with the capital infusion, one of Enstar's wholly owned subsidiaries has entered into a combination loss portfolio and adverse development cover reinsurance agreement with Core Specialty. 

Core Specialty has also appointed a new management team and board of directors.  Jeff Consolino becomes president and chief executive officer, while Ed Noonan becomes executive chairman.  The Core Specialty board of directors includes Noonan and Consolino, as well as Enstar’s Paul O'Shea and Robert Campbell; Steve DeCarlo; Dom Addesso; Don Larson; Matthew Ebbel, managing partner of SkyKnight; Marc Stad, managing partner of Dragoneer; and Chris Watson, partner of Aquiline.  

Dominic Silvester, chief executive of Enstar, said: "Enstar is committed to realising Core Specialty's full potential as a specialty commercial property and casualty insurer.  Enstar will work with the company, as opportunities warrant, in our ongoing acquisition activities and we are pleased to maintain our significant investment in the company.” 

Core Specialty Insurance Holdings, StarStone US, Enstar, SkyKnight Capital, Dragoneer Investment Group, Aquiline Capital Partners, Dominic Silvester

Bermuda Re