Enstar Announces Sale of Pavonia Life Business to Global Bankers Insurance Group
18 February 2017 - 8:15AM
Enstar Group Limited (NASDAQ:ESGR) announced today that it has
entered into an agreement to sell its subsidiary Pavonia Holdings
(US), Inc. (“Pavonia”) for a total purchase price of $120 million
to an affiliate of Global Bankers Insurance Group (“Global
Bankers”), the insurance and reinsurance group of companies of Eli
Global, LLC.
Pavonia owns Pavonia Life Insurance Company of Michigan, Pavonia
Life Insurance Company of New York, and Enstar Life (US), Inc.
Enstar originally acquired the Pavonia business from HSBC Finance
in 2013.
Completion of the transaction is subject to regulatory approvals
and satisfaction of closing conditions. The transaction is
expected to close during the third or fourth quarter of 2017.
Dominic Silvester, Enstar’s Chief Executive Officer, said:
“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. 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-Chief Executive Officer 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.”
About Enstar
Enstar is a multi-faceted insurance group that offers innovative
capital release solutions and specialty underwriting capabilities
through its network of group companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. Enstar is a market leader in
completing legacy acquisitions, having acquired over 75 companies
and portfolios since its formation in 2001, and has over $12
billion in total assets. Enstar's active underwriting businesses
include the StarStone group of companies, an A- rated global
specialty insurance group with multiple global underwriting
platforms, and the Atrium group of companies, which manage and
underwrite specialist insurance and reinsurance business for
Lloyd's Syndicate 609. For further information about Enstar, see
www.enstargroup.com.
About Eli Global & Global
Bankers
Global Bankers Insurance Group is a family of insurance and
reinsurance companies, focused on Life Insurance and Annuities. Its
members include Bankers Life Insurance Company, Colorado Bankers
Life Insurance Company, and Southland National Insurance
Corporation. Global Bankers Insurance Group is part of the
privately-held Eli Global federation of autonomous businesses
serving a diversified range of industries including insurance,
financial services, healthcare services, revenue cycle management,
information technology, marketing and sales, publishing,
distribution, market research, and business information.
Cautionary Statement
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements include statements regarding the intent,
belief or current expectations of Enstar and its management team.
Investors are cautioned that any such forward-looking statements
speak only as of the date they are made, are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those projected in the
forward-looking statements as a result of various factors.
Important risk factors regarding Enstar can be found under the
heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2015 and Form 10-Q for the quarterly period ended
September 30, 2016, and are incorporated herein by reference.
Furthermore, Enstar undertakes no obligation to update any written
or oral forward-looking statements or publicly announce any updates
or revisions to any of the forward-looking statements contained
herein, to reflect any change in its expectations with regard
thereto or any change in events, conditions, circumstances or
assumptions underlying such statements, except as required by
law.
Contact: Mark Smith
Telephone: +1 (441) 292-3645
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