Subsidiaries boost profits at Enstar
Bermuda-based Enstar Group is to sell its subsidiary Pavonia Holdings to an undisclosed affiliate of Global Bankers Insurance Group, the insurance and reinsurance group of companies of Eli Global, for $120 million.
Enstar originally bought the Pavonia business from HSBC Finance in 2013. Pavonia owns Pavonia Life Insurance Company of Michigan, Pavonia Life Insurance Company of New York, and Enstar Life.
The deal is expected to close during the third or fourth quarter of 2017 and is subject to regulatory approvals and satisfaction of closing conditions.
“Since acquiring the business in 2013, we have put in place improved processes and effective systems that have driven solid contributions to Enstar and have significantly enhanced the value of Pavonia,” said Dominic Silvester, CEO of Enstar. Our decision to sell this valuable business to a strong and capable investor is a testament to the efforts of the Pavonia team under our leadership.”
“Signing this transaction is yet another significant milestone in the execution of our strategy,” said George Luecke, vice chairman and co-CEO of Global Bankers. “Pavonia’s long duration liabilities, particularly structured settlements, fit well with our investment capabilities, and its talented staff and efficient platform will enhance our operational capacity. Underscoring our commitment to the life and annuity sector, this deal when closed will mark our sixth and largest insurance company acquisition since 2014.”
Enstar Group, Dominic Silvester, Pavonia Holdings, Global Bankers Insurance Group, Eli Global, Bermuda