Enstar to purchase Torus as Tobin replaced as CEO

The acquisition of Torus' six wholly owned insurance vehicles, including its Lloyd's Syndicate 1301, is expected to complete by the end of the year. The transaction is subject to governmental and regulatory approval and the satisfaction of various customary closing conditions. Enstar will contribute approximately $69m in cash towards the $692m purchase price.hideIt will also issue approximately 1,901,000 ordinary voting shares and approximately 711,000 newly created non-voting preferred shares to raise around $346m to partially fund the deal. Affiliates of private equity firm Stone Point Capital Ltd will provide the remaining $277m through an equity co-investment. Following the transaction, Enstar will own 60% of Torus and Stone Point will own 40%. Private equity firms First Reserve and Corsair Capital, Torus' largest shareholders, will receive both Enstar shares and cash consideration in the transaction, with the remaining Torus shareholders receiving all cash. Meanwhile Torus announced on Tuesday that Dermot O'Donohoe has been appointed Chief Executive Officer of the Torus Group. He will fulfill the role in addition to his position as Chief Executive of Torus International and replace Clive Tobin who is retiring following four years of leadership. Commenting on the announcement, Mr Tobin said: "It has been a privilege to lead Torus from a start-up to the company it is today and to work with a team of such exceptional people. On joining Torus I had made it clear of my intent to step down once the company entered the next stage of its development and this is the appropriate time. I want to thank all Torus employees for their dedication and contributions to building a very special company and I wish the team every success for the future." Mr O'Donohoe added: "Clive has been a strong leader and we greatly appreciate his contributions to Torus' development during the company's formative years. Under his leadership, Torus has achieved significant operational scale and global reach. We wish him well in his retirement." With more than 25 years of insurance experience, Mr O'Donohoe was appointed Chief Executive of Torus International in 2011 having joined the company in 2009 as Chief Underwriting Officer, Global Specialty, and Chief Operating Officer of Torus in the UK and Europe. In further news, Enstar also announced this week that affiliates of Stone Point have committed to provide up to $106m of equity capital towards Enstar's previously announced acquisitions of Atrium Underwriting Group and Arden Reinsurance Company. Assuming both of those transactions are consummated, Enstar would own 60% of those companies and Stone Point would own 40%. Dominic Silvester, Enstar's Chief Executive Officer, said: "Following the recent announcement of our agreement to acquire Atrium, we are pleased to continue our expansion into 'live' underwriting through the acquisition of Torus. 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. In addition, we are excited to be partnering with Stone Point. We have worked with them successfully in the past and we believe their expertise in the insurance industry will add tremendous value to these acquisitions." On Enstar's acquisition of Torus, Mr O'Donohoe said: "We are very pleased with this transaction and the opportunity to join Enstar during this exciting time, as it expands into the live insurance market. We have a high regard for both Enstar and Stone Point and are confident in our collective abilities to achieve great results as a result of this deal.

Enstar to purchase Torus as Tobin replaced as CEO

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