Enstar Announces Sale of Pavonia Life Business to Global Bankers Insurance Group
Feb 17, 2017
HAMILTON, Bermuda, Feb. 17, 2017 (GLOBE NEWSWIRE) -- 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."
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.
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