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Enstar terminates sales process for Atrium and StarStone

September 18, 2018

Enstar has announced that it is no longer exploring a potential sale of its active underwriting businesses, Atrium and StarStone.

In June, the carrier revealed that it had, alongside fellow investor Stone Point Capital, retained investment bank Evercore to “assist in evaluating market interest regarding the potential sale” of the two carriers.

However, in a follow-up US Securities and Exchange Commission filing dated 18 September, Enstar said that it had now terminated this process.

“The Company and Stone Point initially engaged an investment bank to assess interest in these businesses in light of their favourable perception of market conditions (following several recent transactions in the industry), but have decided to stop the evaluation process and continue as owners of StarStone and Atrium,”it stated.

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 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.