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Enstar mulling sale of Atrium and StarStone

June 18, 2018

Enstar is exploring a potential sale of its active underwriting businesses, Atrium and StarStone.

In a Securities and Exchange Commission filing dated 18 June, the company said that it had retained investment bank Evercore to “assist in evaluating market interest regarding the potential sale” of the two carriers. 

Enstar said that it had made the decision along with private equity firm Stone Point Capital, which owns a share of the two businesses through its Trident V funds.

“The company and Stone Point reached the decision to engage Evercore in light of their favorable 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,” Enstar said in the statement.

Enstar and Stone Point acquired Atrium, which manages Lloyd’s Syndicate 609, for around $153mn in 2013, as part of the legacy firm’s efforts to move into the live non-life underwriting market.

Enstar owns 60 percent of the Lloyd’s managing agency, while the Stone Point-managed Trident V fund owns the remaining 40 percent.

Meanwhile, in 2014, Enstar and Stone Point completed a $692mn deal to purchase Torus, which later rebranded to StarStone in 2015, continuing its expansion into live underwriting.

StarStone is a global specialty insurer and the holding company of five wholly owned insurance platforms, including Lloyd’s Syndicate 1301.

StarStone is owned 59 percent by Enstar, with the Trident V funds managed by Stone Point owning 39.3 percent and Dowling Capital Partners owning 1.7 percent.

Enstar said that it cannot predict whether or when any sale of Atrium or StarStone will occur.