Remaining KaylaRe shares bought up by Enstar

Enstar Group has bought full control of Bermuda-based KaylaRe Holdings.

The group already had a 48 percent stake in the company, but has now purchased the remaining available shares. Enstar founded KaylaRe in 2016 alongside funds managed by Hillhouse Capital Management and the Trident V funds managed by Stone Point Capital.

According to the terms of the agreement, valued at approximately $400 million, Hillhouse and Stone Point will exchange their respective 44 percent and 8 percent shareholdings in KaylaRe for Enstar shares.

In turn Hillhouse will increase its overall economic interest in Enstar from 9.9 percent to 17.1 percent and its voting interest from 3.3 percent to 9.7 percent. Stone Point will increase its economic interest from 6.9 percent to 7.6 percent and its voting interest from 8.2 percent to 9.1 percent. The transaction is subject to regulatory approval and is expected to close during the first quarter of 2018.

“This transaction allows us to take full ownership of an important reinsurance platform,” said Dominic Silvester, chief executive officer of Enstar. “It will also enhance our group capital position and equity base. KaylaRe has exceeded our expectations to date, and as sole owner, we will continue to use it as an integral part of our legacy growth strategy. We look forward to the ongoing support of Hillhouse and Stone Point as key partners and shareholders of Enstar.”