Bermuda-based Enstar Group has agreed to buy Maiden Reinsurance North America (MRNA) from insurer Maiden for $307.5m.

MRNA offers property and casualty treaty reinsurance, casualty facultative reinsurance, as well as accident and health treaty reinsurance. The business is domiciled in Missouri.

Terms of the deal

“As part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with Maiden Re North America,” Enstar said in a statement.

The transaction involves the sale of around $1.3bn of legacy reinsurance liabilities.

Enstar will fund the deal through existing cash reserves and borrowings under its revolving credit facility.

The deal excludes Maiden’s AmTrust business or its international insurance services and capital solutions businesses.

Maiden CEO Lawrence Metz said: “This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders.”

The deal is expected to be completed in the fourth quarter of this year, subject to regulatory nod.

Last week, TransRe acquired the exclusive renewal quotation rights to Maiden Re’s US treaty reinsurance underwriting business.

Maiden CFO and COO designate Patrick Haveron said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position.

“We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.”