Enstar Group To Buy Companion Property And Casualty Insurance For $218 Mln

(RTTNews) - Enstar Group Limited (ESGR) said Tuesday that it has agreed to acquire Companion Property and Casualty Insurance Co. from Blue Cross and Blue Shield of South Carolina for $218 million. The company noted that the deal will enable it to expand its property and casualty insurance business in the U.S.

Companion is a South Carolina-based insurance group writing property, casualty, specialty and workers compensation business. The company has also provided fronting and third party administrative services.

Hamilton, Bermuda-based Enstar Group said it expects to finance the purchase price through a combination of cash on hand and debt financing. The transaction is expected to close by the end of the fourth quarter of 2014.

Enstar expects to operate the business largely as part of its property and casualty legacy business. The company and its Torus subsidiaries are assessing opportunities for policy renewals of certain Companion business into Torus.

ESGR is trading at $146.71, up $1.11 or 0.76 percent on a volume of 4,300 shares.