Enstar takes full control of KaylaRe in $400m deal

Enstar Group has signed an agreement to acquire a further 52 percent stake in KaylaRe Holdings, the parent company of KaylaRe, a Bermuda-based Class 4 reinsurer.

Through the deal, Enstar acquires full ownership of KaylaRe as it already owned a 48 percent equity share before the transaction. Enstar founded KaylaRe in 2016 alongside funds managed by Hillhouse Capital Management, and the Trident V funds managed by Stone Point Capital.

In the transaction, valued at approximately $400 million, Hillhouse and Stone Point will exchange their respective 44 percent and 8 percent shareholdings in KaylaRe for Enstar shares. Hillhouse will increase its overall economic interest in Enstar from 9.9 percent to 17.1 percent and its voting interest from 3.3 percent to 9.7 percent. Stone Point will increase its economic interest from 6.9 percent to 7.6 percent and its voting interest from 8.2 percent to 9.1 percent. The transaction is subject to regulatory approval and is expected to close during the first quarter of 2018.

KaylaRe aims to deliver superior risk-adjusted returns over market cycles through diversified asset allocation and selective underwriting. The investments managed by Hillhouse have been a key driver of KaylaRe’s profitable performance, according to the Feb. 5 press release.

Enstar's CEO Dominic Silvester said: “This transaction allows us to take full ownership of an important reinsurance platform. It will also enhance our group capital position and equity base. KaylaRe has exceeded our expectations to date, and as sole owner, we will continue to use it as an integral part of our legacy growth strategy. We look forward to the ongoing support of Hillhouse and Stone Point as key partners and shareholders of Enstar.”

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