Business briefs: Enstar acquires HSBC affiliate

FRIDAY, SEPT. 7: Enstar Group Limited, a Bermuda company,  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 US 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.

New chief underwriter

Catlin Group Limited announced that Markus A. Eugster has been appointed chief underwriting officer for Catlin Re Switzerland.

Markus Eugster joined Catlin in 2010 as Underwriting director and deputy chief underwriting Officer at Catlin Re Switzerland.

Peter Schmidt, CEO of Catlin Re Switzerland, said: “I am delighted to announce that Markus Eugster will serve as CUO of Catlin Re Switzerland. Our reinsurance operation is an essential element of Catlin’s European business, and we have already built a great reputation. I am confident that with Markus’ leadership the team will continue to build on our success to date and seek new opportunities across our target markets.”

Iron-Starr

Iron-Starr Excess Agency Ltd.  has launched a customized Lead Errors & Omissions Difference-in-Conditions product to be offered to professional services organizations.

Iron-Starr’s Pioneer for Professions coverage will be underwritten by Iron-Starr on behalf of Ironshore Insurance Ltd. 

Iron-Starr’s Pioneer for Professions product offers  follow-form E&O protection with difference-in-conditions insurance, including drop down coverage options for:

• wrongful refusal to pay an underlying carrier;

• inability to pay, resulting from the insolvency of an underlying carrier;

• and by election, drop-down punitive damage protection.

“The professional services sector is an important focus of our Financial Lines division and one, of many, that we strive to meet identified insurance market demand,” said Stuart Anderson, chief executive officer of Iron-Starr.