Hamilton, Bermuda – Enstar Group Limited (Nasdaq:ESGR) recently announced that it has entered into a definitive agreement to acquire Companion Property and Casualty Insurance Company from Blue Cross and Blue Shield of South Carolina. Companion is a South Carolina-based insurance group writing property, casualty, specialty and workers compensation business, and has also provided fronting and third party administrative services.
The total consideration for the transaction will be $218 million. Enstar expects to finance the purchase price through a combination of cash on hand and debt financing. Completion of the transaction is conditioned on, among other things, governmental and regulatory approvals and satisfaction of various customary closing conditions. The transaction is expected to close by the end of the fourth quarter of 2014.
“We are pleased to announce our agreement to acquire Companion, which continues the successful expansion of our property and casualty business in the U.S.” said Dominic Silvester, Chief Executive Officer of Enstar.
Enstar expects to operate the business largely as part of its property and casualty legacy business, while working with Companion to ensure that its policyholders continue to receive excellent service. Enstar and its Torus subsidiaries are assessing opportunities for policy renewals of certain Companion business into Torus.