Enstar hints at Atrium/StarStone sale

Bermuda-based Enstar Group has announced that it is considering the possible sale of subsidiaries Atrium Underwriting and StarStone Insurance.

Atrium Underwriting writes business through Lloyd’s syndicate 209, and StarStone Insurance is a speciality insurance unit with a global presence.

In a SEC filing Enstar indicated that, in light of other M&A activity in the industry, it felt market conditions could be favourable in terms of a potential sale. As a result Enstar said that it has retained investment bank Evercore Group to evaluate market interest in acquiring these companies.

When Enstar acquired Atrium and StarStone it partnered with Trident V funds managed by Stone Point Capital. Prior to this acquisition Enstar’s core business had always been run-off and the purchase marked a departure from its traditional strategy.

M&A activity has been high in recent years with several notable deals having been completed in the past year, many at favourable pricing levels.

In its SEC filing, the company said: “The Company and Stone Point Capital have retained Evercore Group to assist in evaluating market interest regarding the potential sale of the Company’s active underwriting businesses, Atrium and StarStone.

“The Company and Stone Point reached the decision to engage Evercore in light of their favourable perception of market conditions, following several other recent transactions in the industry, and will explore whether there is interest in these businesses at attractive pricing levels.”