StarStone CEO resigns after parent company drops sale plan

StarStone CEO Demian Smith has stepped down from his position directly after StarStone’s parent company, Bermuda-based run-off specialist Enstar, revealed that it is no longer selling the specialty carrier.

“We are in the final stages of recruiting a successor who we expect to announce in mid-October,” StarStone said in a statement.

“In the interim, Chris Rash will lead StarStone in his role of executive chairman to support a smooth transition.”

Smith was appointed group CEO of StarStone in December 2016, to lead StarStone’s global business which operates across three main regions: US and Bermuda, Lloyd’s and the London market, and Continental Europe. He previously served as CEO of StarStone’s international operations from 2014, overseeing Lloyd’s and the London market and Continental Europe operations. He joined the company in 2010 as global head of marine.

The news of Smith’s departure follows Enstar’s decision to no longer pursue the sale of its active underwriting businesses, Atrium and StarStone.

Atrium Underwriting writes business through Lloyd’s syndicate 209 and StarStone Insurance is a speciality insurance unit with a global presence.

In June 2018 Enstar said that, in light of other M&A activity in the industry, it felt market conditions could be favourable in terms of a potential sale. The company retained investment bank Evercore Group to evaluate market interest in acquiring these companies.

Enstar’s core business has always been run-off and the acquisition of Atrium and StarStone marked a departure from its traditional strategy, the company said at the time.

However, in a new SEC filing, Enstar revealed that it is no longer assessing market interest regarding the potential sale of Atrium and StarStone. The company and Stone Point initially engaged an investment bank to assess interest in these businesses in light of their favourable perception of market conditions (following several recent transactions in the industry), but the firm has decided to stop the evaluation process and continue as owners of StarStone and Atrium.

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