Enstar Group and Stone Point Capital have agreed to sell the Lloyd’s managing agency StarStone Underwriting to newly formed specialty re/insurance holding company Inigo.
The transaction covers the right to operate Lloyd’s Syndicate 1301 and will mark Inigo launch at Lloyd’s of London.
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Once the transaction is completed, Enstar, Stone Point and Dowling funds will receive $30m worth Inigo shares.
Additionally, Enstar and Stone Point will invest up to $27m and $18m respectively into Inigo.
As part of the transaction, Inigo will receive certain transitional services and staff from Enstar. It will operate as a Lloyd’s specialty insurer writing a streamlined portfolio of insurance and reinsurance risks.
Inigo led by founders Richard Watson, Russell Merrett and Stuart Bridges.
Enstar CEO Dominic Silvester said: “This transaction optimises and capitalises on StarStone International’s assets at Lloyd’s and provides an opportunity to participate in a new venture with proven leadership at a time of favourable market conditions.
“This is a positive outcome for StarStone Underwriting, and we look forward to working with the Inigo management team as they launch this new business.”
In conjunction with the transaction, Enstar, Stone Point and Dowling Capital will retain the economics of Syndicate 1301’s underwriting portfolios of the current and prior years.
The sale follows the previously announced decision by Enstar and Stone Point to place StarStone’s International business into an orderly run-off and review strategic alternatives for the business.
The companies recently agreed to a renewal rights transaction for StarStone’s European Financial Lines business and the sale of Belgian-based underwriting agent Vander Haeghen, which is part of the StarStone International Group.
