Enstar Group Limited completed the acquisition from of HSBC Insurance Company of Delaware and Household Life Insurance Company of Delaware, as well as
its three subsidiary insurers, the company announced. The seller was Household Insurance Group Holding Company. Enstar Group paid approximately $155.7 million.
Limited (Nasdaq:ESGR) announced today that one of Enstar’s wholly-owned
subsidiaries completed the previously announced acquisition from
Household Insurance Group Holding Company of HSBC Insurance Company of
Delaware and Household Life Insurance Company of Delaware, as well as
its three subsidiary insurers, on March 31, 2013. Household Insurance
Group Holding Company is a subsidiary of HSBC Holdings plc.
The HSBC companies acquired added approximately $1.4 billion in total
cash and investments to Enstar’s balance sheet.
As previously disclosed, the base purchase price of $181 million was
rolled forward under the terms of the stock purchase agreement based
upon changes to the capital and surplus of the acquired entities
arising from the operation of the business prior to closing. The amount
paid at closing was approximately $155.7 million and was financed in
part by a drawing under Enstar’s revolving credit facility.
Enstar, a Bermuda company, acquires and manages insurance and
reinsurance companies in run-off and portfolios of insurance and
reinsurance business in run-off, and provides management, consultancy
and other services to the insurance and reinsurance industry.
The Enstar Group Limited logo is available at
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 may
be found under the heading “Risk Factors” in Enstar’s Form 10-K for the
year ended December 31, 2012, 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.