Enstar Group Ltd. has agreed to buy global specialty insurer Torus Insurance Holdings Ltd. for $692 million, continuing its push into 'live' underwriting.
"Torus provides us with an opportunity to acquire a large, international A- rated group of companies that both diversifies Enstar into the active market and enhances the opportunities available to our core legacy business," Enstar Chief Executive Dominic Silvester said.
The latest purchase comes after Enstar said in June it would buy Atrium Underwriting Group Ltd. and Arden Reinsurance Co. for about $183 million and $80 million, respectively.
Torus is the holding company of six insurance vehicles that offer property, casualty and specialty insurance, as well as reinsurance products.
Private-equity firms First Reserve and Corsair Capital, Torus' largest shareholders, will receive both Enstar shares and cash in the deal, with the remaining Torus shareholders receiving all cash.
Enstar said it will issue roughly 1.9 million ordinary voting shares and about 711,000 newly created nonvoting preferred shares having a total value of $346 million to partially fund the purchase price.
Enstar will also contribute roughly $69 million in cash towards the purchase price, with affiliates of Stone Point Capital LLC funding the remaining $277 million through an equity co-investment.
Following the closing, Enstar will own 60% of Torus and Stone Point will own 40%.