Enstar Group Limited to Acquire U.S. and Canadian Closed-Life Insurance Operations From HSBC Finance

6 Sep, 2012 15:10 CET

Enstar Group Limited
Press release

Enstar Group Limited to Acquire U.S. and Canadian Closed-Life Insurance
Operations From HSBC Finance

HAMILTON, Bermuda, 2012-09-06 15:10 CEST (GLOBE NEWSWIRE) -- Enstar Group
Limited (Nasdaq:ESGR) today announced that it has entered into a definitive
agreement under which Enstar will acquire all of the shares of Household Life
Insurance Company of Delaware and HSBC Insurance Company of Delaware from
Household Insurance Group Holding Company, an affiliate of HSBC Holdings plc. 

The companies to be acquired have written various U.S. and Canadian life
insurance, including credit insurance, term life insurance, assumed
reinsurance, corporate owned life insurance, and annuities. 

Enstar expects to finance the purchase price through a combination of cash on
hand and a drawing under its revolving credit facility. The base purchase price
of $181 million will roll forward under the terms of the stock purchase
agreement based upon changes to the capital and surplus of the acquired
entities arising from the operation of the business prior to closing.
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
first quarter of 2013. 

"Whilst our core focus remains non-life property and casualty run-off, we are
excited to further expand our portfolio of run-offs with this acquisition of
closed-life insurance business from HSBC," said Dominic Silvester, Chief
Executive Officer of Enstar. "We recognize the confidence they are putting in
Enstar by entrusting the insurance policies of their own customers to us. We
have been studying closed-life insurance for a number of years – including
through our small acquisition of Laguna Life Limited in 2011 – and we have
expanded our knowledge and understanding of this business, which we see as an
enhancement to our global run-off strategy." 

Enstar, a Bermuda company, acquires and manages insurance and reinsurance
companies in run-off and portfolios of insurance and reinsurance business in
run-off, and provides management, consultancy and other services to the
insurance and reinsurance industry. 

The Enstar Group Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5734 

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include statements regarding the intent, belief or current
expectations of Enstar and its management team. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those projected in the forward-looking statements as a
result of various factors. In particular, Enstar may not be able to complete
the proposed transaction on the terms summarized above or other acceptable
terms, or at all, due to a number of factors, including but not limited to
failure to obtain governmental and regulatory approvals or to satisfy other
closing conditions. The foregoing list of important factors is not exhaustive.
Other important risk factors regarding Enstar may be found under the heading
"Risk Factors" in Enstar's Form 10-K for the year ended December 31, 2011, and
are incorporated herein by reference. Enstar undertakes no obligation to update
any written or oral forward-looking statements or publicly announce any updates
or revisions to any of the forward-looking statements contained herein, to
reflect any change in its expectations with regard thereto or any change in
events, conditions, circumstances or assumptions underlying such statements,
except as required by law. 




         CONTACT: Richard J. Harris
         Telephone: (441) 292-3645