Enstar Group subsidiary to buy Maiden Re North America
Enstar Group has announced that one of its wholly owned subsidiaries has entered into a definitive agreement to acquire Maiden Reinsurance North America (MRNA) from a subsidiary of Maiden Holdings for $307.5 million.
Maiden Re North America is a diversified insurance company domiciled in Missouri that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance.
According to Enstar as part of the transaction an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with Maiden Re North America.
The transaction is subject to certain closing adjustments. Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves upon closing.
Completion of the transaction is conditioned on, among other things, governmental and regulatory approvals and satisfaction of various customary closing conditions. The transaction is expected to close in the fourth quarter of 2018.
Enstar, which will operate the business in run-off, said that it expects to finance the purchase price through a combination of cash on hand and borrowings under its revolving credit facility.
