Arden Holdings Limited to Sell Atrium Underwriting Group and Arden Reinsurance to Enstar Group Limited
Arden Holdings Ltd. (“Arden”) announced yesterday that it has entered
into definitive agreements with Enstar Group Ltd. (NASDAQ: ESGR) for the
sale of its remaining subsidiaries, Atrium Underwriting Group Ltd.
(“Atrium”) and Arden Reinsurance Company Ltd. (“Arden Reinsurance”).
Atrium is an underwriting business at Lloyd’s of London, which manages
Syndicate 609 and provides approximately one quarter of the syndicate’s
capital. Atrium specializes in accident and health, aviation, marine
property, non-marine property, professional liability, property and
casualty binding authorities, reinsurance, upstream energy, war and
terrorism insurance, cargo and fine art. Arden Reinsurance is a
Bermuda-based reinsurance company that provides reinsurance to Atrium
and is currently in the process of running off certain other
discontinued businesses.
Atrium will be acquired for approximately $183.0 million and Arden
Reinsurance will be acquired for approximately $79.6 million. The two
transactions are governed by separate purchase agreements and the
acquisition of each company is not conditioned on the acquisition of the
other. Completion of each transaction is subject to various customary
closing conditions and governmental and regulatory approvals. Both
transactions are expected to close by the end of 2013.
The sales of Atrium and Arden Reinsurance represent the disposition of
Arden’s remaining operating businesses. Arden was founded as Ariel
Holdings Ltd. in 2005. In April 2012, Arden completed the sale of Ariel
Re’s Bermuda-based insurance and reinsurance operations to the Goldman
Sachs Group, Inc. (NYSE: GS) and the sale of its Zurich-based credit and
surety operations to Arch Capital Group Ltd. (NASDAQ: ACGL).
About Arden
Arden Holdings Ltd., (formerly Ariel Holdings Ltd. (“Ariel”)), was
formed in December 2005 as a Bermuda-based catastrophe reinsurer in the
aftermath of Hurricanes Katrina, Rita and Wilma. Ariel was initially
capitalized with approximately $1.0 billion from leading global private
equity firms, including: The Blackstone Group, Texas Pacific Group,
Thomas H. Lee Partners, Oak Hill Capital Partners, Olympus Partners,
affiliates of Bain Capital, SAB Capital and Eton Park Capital Management.
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