IMPORTANT NEWS FOR OUR US CLIENTS

On 10 June 2020 Enstar Group announced a recapitalization of StarStone U.S., which will significantly increase the underwriting capacity of StarStone’s US operations through a combination of new investors, SkyKnight, Dragoneer and Aquiline and a rollover of Enstar’s existing equity.

This is an exciting time for StarStone U.S. We are delighted to receive further endorsement from our shareholders and fresh capital from new investors, as StarStone U.S. continues to develop as a specialty commercial property & casualty insurer.

We look forward to continuing to deliver high value service and differentiated products to our producers and brokers.


TRANSACTION OVERVIEW
    • As part of the transaction, a new and proven management team and Board of Directors will be appointed to StarStone U.S. Jeff Consolino will be CEO, having previously served as Executive Vice President, Chief Financial Officer and a Director of American Financial Group. Ed Noonan will be Executive Chairman, following his former position as Chairman and CEO of Validus Group. The appointments are subject to regulatory approval.
    • Together with our new investors, StarStone U.S.’s shareholders believe the recapitalization is a compelling opportunity to unlock the full potential of StarStone U.S. as a specialty commercial P&C insurer, at a favorable time in the markets.
    • The Investors have committed $610 million in new equity capital which, together with the rollover of Enstar’s existing ownership, and an additional equity commitment of over $20 million from management, will increase the equity capitalization of StarStone U.S. to over $850 million.
    • At closing, the new Board of Directors will include Messrs. Noonan and Consolino; Paul O’Shea and Robert Campbell from Enstar; Steve DeCarlo; Matthew Ebbel, Managing Partner of SkyKnight; Marc Stad, Managing Partner of Dragoneer; and Chris Watson, Partner of Aquiline.

BUSINESS AS USUAL

StarStone U.S. will continue its business as usual while the parties work through regulatory approvals and closing conditions. As we prepare for closing in the coming months, we will share new information as things develop.

If you have any further questions on this update, please do not hesitate to contact your normal underwriting contact.

READ ENSTAR’S MARKET ANNOUNCEMENT, HERE.

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