Newly formed specialty (re)insurance holding company Inigo Limited is buying Lloyd’s managing agency StarStone Underwriting Limited (SUL) from Enstar Group Limited and Stone Point Capital LLC.
SUL’s sale, which includes the right to operate Lloyd’s Syndicate 1301, will see Enstar, Stone Point, and Dowling Capital Partners receive US$30 million (approximately £22.7 million) of consideration in the form of Inigo shares upon closing sometime in the first half of next year.
According to the deal announcement, the previous owners will retain the economics of Syndicate 1301’s 2020 and prior years’ underwriting portfolios as the business runs off. Meanwhile, Enstar and Stone Point will also commit to invest as much as US$27 million and US$18 million, respectively, into Inigo.
“This transaction optimises and capitalises on StarStone International’s assets at Lloyd’s and provides an opportunity to participate in a new venture with proven leadership at a time of favourable market conditions,” stated Enstar chief executive Dominic Silvester.
“This is a positive outcome for SUL, and we look forward to working with the Inigo management team as they launch this new business.”
Under the leadership of founders Richard Watson, Russell Merrett, and Stuart Bridges, Inigo will operate as a Lloyd’s specialty insurer writing what is described as a “streamlined” (re)insurance risks portfolio. Additionally, Inigo will receive certain transitional services and staff from Enstar.