A.M. Best Concludes Review and Affirms A- Ratings of Torus Insurance Holdings Limited Subsidiaries

A.M. Best today issued press releases advising that it has affirmed the financial strength rating (FSR) of “A-” (Excellent) and the issuer credit ratings (ICR) of “a-” for our insurance entities:

  • Torus Insurance (Bermuda) Limited
  • Torus Insurance (UK) Limited
  • Torus Insurance (Europe) AG
  • Torus Specialty Insurance Company
  • Torus National Insurance Company

As part of Lloyd’s and covered by Lloyd’s financial strength, Syndicate 1301’s A.M. Best rating remains “A” (Excellent) and “A+” (Strong) by Fitch Ratings and Standard and Poor’s.

A.M. Best’s announcements also stated that it has removed the Torus group from under review with negative implications and has assigned the ratings a negative outlook, reflecting the challenging market in which Torus operates.  The announcements follow the April 1, 2014 closing of the acquisition of the Torus group by Enstar Group Limited (Enstar) (NASDAQ: ESGR) and Stone Point Capital LLC (Stone Point).

Dermot O’Donohoe, Torus Chief Executive Officer, said, “We are very pleased that A.M. Best’s review has concluded with an affirmation of our A.M. Best ratings.  This reflects our strengthened capital position following a loss portfolio transfer reinsurance agreement with a subsidiary of Enstar, which covers Torus group’s discontinued lines of business; as well as actions taken to discontinue the underperforming lines and achieve significant expense savings.

“We are confident that Torus, with the support of our new owners, Enstar and Stone Point, is now on a solid path to future success and profitability.”

Both Enstar and Stone Point have a long track record of building strong and profitable insurance businesses, Enstar in insurance run-off and Stone Point in active underwriting.

As A.M. Best discussed, Torus has, since its launch in 2008, built up a significant market presence through a combination of acquisitions of teams and businesses and organic growth.  As a result, Torus now writes a well-diversified specialist portfolio from its operations in London, Bermuda, the United States and continental Europe.

“Torus, together with Enstar and Stone Point, is committed to delivering on our financial plans for Torus group, which we anticipate will lead to future positive actions by A.M. Best,” commented Mr. O’Donohoe.  “We look forward to a successful future and a solid partnership with Enstar and Stone Point.”

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 Torus and its management team. 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.  Actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Torus 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.

Enstar Group Limited and Stone Point Capital Complete Acquisition of Torus Insurance Holdings Limited

Enstar Group Limited (“Enstar”) (Nasdaq: ESGR) and Stone Point Capital LLC (“Stone Point”) issued a press release earlier today announcing the completion of the previously announced acquisition of A- rated global specialty insurer, Torus Insurance Holdings Limited (“Torus”).

Following the announcement, Torus today announced the following additional appointments:

  • Patrick Tiernan appointed as Executive Director and Chief Financial Officer elect

Mr. Tiernan joins the board of Torus and will succeed current Chief Financial Officer, Tim Harris, beginning in May.

Mr. Tiernan has over 16 years of experience in the insurance business, with the past 10 years at Zurich Insurance Group where he most recently served as CEO of Zurich’s Centrally Managed Businesses.

  • Walker Rainey appointed as a Non-Executive Director

Mr. Rainey also joins the Board, bringing to Torus his over 30 years of experience in the insurance industry, including eight years as Managing Director of Alterra Capital Europe Ltd, and eleven years as CFO of XL Europe Limited.

Dermot O’Donohoe, Torus Chief Executive Officer, said, “Becoming part of Enstar is a very positive development for Torus.  Enstar and Stone Point are long-term, best-in-class investors in the insurance industry and bring extensive expertise to Torus.  We look forward to a strong and successful future.

For our clients and broker partners, it is business as usual as we seamlessly transition into the Enstar group, and we look forward to continuing to provide excellent products and service.”

Nick Packer, CEO of Bayshore Holdings Ltd., the immediate parent of Torus, said, “With today’s closing, we are excited to begin a new chapter for Torus.  Together with the Stone Point and the Torus teams, we are hitting the ground running as we work to achieve our goals.”  Mr. Packer is Joint Chief Operating Officer of Enstar and leads Enstar’s underwriting, claims, and reinsurance operations.  With Dominic Silvester and Paul O’Shea, Mr. Packer co-founded Enstar, a venture that began in the early 1990s.

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About Enstar
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.  Enstar recently expanded into the active underwriting business with its 2013 acquisitions of Atrium Underwriting Group Ltd. and Arden Reinsurance Company Ltd., and its April 2014 acquisition of Torus.  For further information about Enstar, see www.enstargroup.com.

About Stone Point
Stone Point is a financial services-focused private equity firm based in Greenwich, CT.  The firm has raised and managed five private equity funds — the Trident Funds — with aggregate committed capital of more than $9 billion.  In addition to the capital invested by the Trident Funds, Stone Point has secured approximately $6 billion of equity co-investments since 2001.  Stone Point targets investments in the global financial services industry, including investments in insurance and reinsurance companies, banks and depository institutions, companies that provide outsourced services to financial institutions, asset management firms, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies.  For further information about Stone Point, see www.stonepoint.com.