Best’s News & Research Service - June 01, 2009 12:23 PM (EDT)
Enstar to Acquire Copenhagen Re
HAMILTON, Bermuda //BestWire// - Bermuda-based run-off specialist Enstar Group Ltd. said its wholly owned subsidiary, Nordic Run-Off Ltd., will pay $28 million to acquire Copenhagen Reinsurance Co. Ltd. from Alm. Brand Forsikring A/S.
Copenhagen Re posted an $84 million loss as a result of the World Trade Center catastrophe on Sept. 11, 2001. As a result of this loss, the company stopped underwriting new business. In 2002, the company was placed in run-off, according to an AMB Credit Report. Enstar, formerly known as Castlewood Holdings, acquires and manages insurance and reinsurance companies in run off and provides management, consultancy and other services to the insurance and reinsurance industry. Last year, Enstar Group Ltd. acquired AMP Ltd.'s Australia-based closed reinsurance and insurance operations (BestWire, March 7, 2008) and Goshawk Insurance Holdings plc (BestWire, June 24, 2008.)
The Copenhagen Re transaction is pending regulatory approval and customary closing conditions. The transaction is expected to close in the third quarter of 2009.
The stock of Enstar (NASDAQ: ESGR) was trading at $52.06 a share on the morning of June 1, down 5.68% from the previous close. In the past year, the stock has traded as high as $122 a share.
(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com)