Enstar Announces Recapitalization of StarStone U.S. with Significant Investment from Aquiline Capital Partners and Other Investors

June 16, 2020

Willkie represented Aquiline in the transaction, positioning StarStone U.S. as a market leader in the specialty property & casualty insurance markets.

On June 10, Enstar Group Limited (NASDAQ:ESGR) announced it agreed to a recapitalization of StarStone U.S. Holdings, Inc. led by investors SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners. The investors 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. The transaction positions StarStone U.S. as a market leader in the specialty property & casualty insurance markets.

As part of the capital infusion, a new management team and Board of Directors will be appointed to StarStone U.S., and one of Enstar’s wholly owned subsidiaries will enter into a combination loss portfolio and adverse development cover reinsurance agreement with StarStone U.S.

StarStone U.S. offers a range of property and casualty insurance products for small to mid-sized businesses. From eight underwriting offices spanning the U.S., StarStone U.S. focuses on niche markets, local distribution, and superior underwriting knowledge. Enstar is a multi-faceted insurance group, with approximately $19.1 billion in assets, that offers innovative capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar is a market leader in completing legacy acquisitions, having acquired approximately 100 companies and portfolios since its formation in 2001.

Longtime client Aquiline Capital Partners is a New York and London-based private equity firm investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare. The firm has $5.3 billion in assets under management as of December 31, 2019.

The Willkie team was led by partner Jeffrey Poss and included associate Thomas Sharkey.