Torus, which is majority-owned by buyout firms First Reserve and Corsair Capital, is the holding company of six wholly owned insurance vehicles, including one Lloyd’s syndicate.
Enstar will issue over 2.6 million shares worth $346m and pay $69m in cash for a 60 per cent stake, while Stone Point is acquiring a 40 per cent interest for $277m.
First Reserve and Corsair will receive both cash and shares, while the remaining shareholders will receive all cash.
As a result of the deal, First Reserve will own an 11.5 per cent stake in Enstar.
In addition, Stone Point has provided $106m of debt capital to fund Enstar’s previously announced acquisition of Atrium Underwriting Group and Arden Reinsurance Company for a 40 per cent stake in each.
Stone Point CEO Charles Davis said, “Stone Point is delighted to be partnering with Enstar on the Torus and Atrium transactions. Our successful relationship with Dominic Silvester and the Enstar team dates back to 2000.
“We have been one of the largest shareholders of Enstar for many years and have worked with Enstar’s senior management on a number of acquisitions.
“We look forward to joining with Enstar in these investments and working with the Torus and Atrium management teams.”
Earlier this year Stone Point Capital and KKR launched a capital markets joint venture with CPPIB Credit Investments.
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