Core Specialty Announces Completion of StarStone U.S. Recapitalization

CINCINNATI, Nov. 30, 2020 /PRNewswire/ — Core Specialty Insurance Holdings, Inc. (“Main Specialty” or the “Organization”) introduced currently that it has finished the recapitalization of StarStone U.S. Holdings, Inc. (“StarStone U.S.”).  The recapitalization was led by SkyKnight Capital, L.P. (“SkyKnight”), Dragoneer Expenditure Group (“Dragoneer”) and Aquiline Funds Companions LLC (“Aquiline,” and alongside one another with SkyKnight and Dragoneer, the “Investors”).  Enstar Group Constrained (NASDAQ:ESGR) (“Enstar”) has obtained a combination of cash thing to consider and shares in Main Specialty as portion of the recapitalization.

The Recapitalization
The $610 million in new equity funds supplied by the Traders, together with the rollover of Enstar’s current possession, and an extra equity obtain of above $60 million from administration and selected other buyers, will raise the fairness capitalization of the Business to about $900 million.

Following providing impact to the recapitalization, SkyKnight and Dragoneer will each have useful ownership of close to 27{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c}, Enstar 25{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c}, Aquiline 11{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c}, management and Directors 6{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c} and other buyers 4{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c}.

Decline Portfolio and Adverse Advancement Include
In conjunction with the funds infusion, a single of Enstar’s wholly owned subsidiaries has entered into a mixture decline portfolio and adverse growth address reinsurance agreement with the Enterprise.

New Management Group and Board of Directors
As section of the cash infusion, Main Specialty has appointed a new management staff and Board of Directors.  Jeff Consolino will be President & CEO and Ed Noonan will be Government Chairman.  The Core Specialty Board of Directors will include things like Messrs. Noonan and Consolino Paul O’Shea and Robert Campbell from Enstar Steve DeCarlo Dom Addesso Don Larson Matthew Ebbel, Controlling Associate of SkyKnight Marc Stad, Controlling Companion of Dragoneer and Chris Watson, Husband or wife of Aquiline.  The additions of Messrs. Addesso and Larson have not been announced beforehand.  Just about every of the associates of Main Specialty’s Board of Directors have an exceptional observe report of developing thriving businesses.&#13

Jeff Consolino is an achieved insurance policies industry leader with far more than 28 several years of sector encounter.  Most lately, Jeff was Govt Vice President, Chief Economic Officer and a Director of American Economical Group, Inc. (“AFG”).  He was earlier a founding govt of Validus Holdings, Ltd. (“Validus Group”) wherever he served as President & Main Economical Officer and a Director.

Ed Noonan brings extra than 40 a long time of field working experience to the Business.  He served most recently as Chairman and CEO of Validus Group, a placement he held from 2005 to 2018.  Underneath Mr. Noonan’s and Mr. Consolino’s management, Validus Group expert important expansion from its start off-up development.  Validus in the end was obtained by AIG in 2018 just after extra than a 10 years as a leading independent community enterprise with Mr. Noonan as CEO.  Mr. Noonan also served as President and CEO of American Re from 1997 to 2002, right after joining the company in 1983.

Rebranding as Core Specialty
Core Specialty’s eyesight is to develop into the main specialty insurance company.  The new title signifies the company’s function – to be the core, or most critical portion, of their clients’ firms, and their motivation as a professional to niche insurance markets. These foundational things of the manufacturer, merged with a hanging visual expression and lively new logo, comprise an identity that conveys a bold vitality and an impressed self-assurance. 

Commenting on the rebranding, Mr. Consolino claimed “Core Specialty has the expanded capital to choose on possibility, the underwriting expertise in location, a established and decisive management staff and a observe record of generating factors come about rapidly.  Collectively and in each of our specialist specialized niche business models, we intend to run with solid entrepreneurial spirit and drive, speed, agility, and empowered conclusion-generating.” 

A lot more information and facts about Core Specialty can be located by viewing www.corespecialtyinsurance.com.&#13

Achievements Prior to Closing and Additions at Closing
Mr. Consolino joined the Business as a specialist with fast effect following the June 2020 announcement of the recapitalization.  Through this time period, the Firm has: produced an Excessive & Surplus Assets Division (a sixth specialty business enterprise device, led by Alison Oliphant) managed the A.M. Finest overview approach foremost to Enterprise scores of A- “Outstanding” (acquiring) obtained extra fairness commitments of $50 million included two very qualified Directors and recruited essential govt, underwriting and assist roles.  Money benefits for the Company have been quite powerful via the first 9 months of 2020.  Modified for intercompany cessions, the put together ratio was 94.9{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c} as a result of the 9 months of 2020.  Fee will increase by way of the initial nine months of 2020 had been 8{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c} across the Firm’s complete portfolio and 17{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c} excluding workers’ payment.

Effective with the closing of the recapitalization, Mr. Consolino grew to become President & CEO and Mr. Noonan grew to become Government Chairman.  Freshly-announced additions to the Main Specialty Board incorporate Messrs. Addesso and Larson. Mr. Addesso was President and CEO of Everest Re Team prior to retiring at the conclude of 2019 and delivers extra than 41 many years of knowledge in the (re)insurance policy current market.  Mr. Larson is the retired President and Chief Running Officer of Fantastic American Insurance plan Corporation, where he worked for extra than 40 many years like with Mr. Consolino.  Rob Kuzloski joins Core Specialty as Government Vice President & General Counsel just after previously serving as Basic Counsel for Validus in which he was a crucial small business partner with Messrs. Consolino and Noonan.  William Vens joins Main Specialty as Government Vice President & Main Monetary Officer right after working most lately at AFG with Mr. Consolino and previously as Chief Economical Officer of Protective Insurance policies Company, a publicly traded insurance company specializing in transportation and workers’ compensation.

Commentary
“Core Specialty is really ‘ready to go’, a topic we are emphasizing as part of our Business rebranding.  When other folks in the market place wrestle with the uncertainties of catastrophe losses and the top value of the COVID-19 pandemic or are engaged in the time consuming system of boosting capital, getting licenses and rankings and hiring certified staff members, we have been executing on our distinct business strategy given that arranging for our funds infusion in early June,” stated Mr. Consolino.  “I am delighted and honored to formally grow to be President & CEO of the Organization immediately after performing with StarStone U.S. about the previous 6 months.  The Enterprise has lots of gifted underwriters and personnel and we have had a excellent response from insureds and their distribution partners.  Premium pricing has only more escalated throughout our lessons of small business considering that June, together with professional house, D&O, excessive casualty, maritime & aviation and expert legal responsibility.  We are a lot more certain than ever that a professional coverage company with the correct management, economical backing, protection from legacy exposures and area of interest orientation can create considerable worth in this atmosphere. We’re ready, equipped, and inspired to get the task finished, proficiently and professionally, by empowering our professional staff to transfer speedily on behalf of buyers and their brokers.”

Mr. Noonan said: “We have assembled a Board comprised of organization founders and business enterprise builders which we believe is 2nd to none.  I have worked carefully with Jeff and a lot of of the Directors for yrs and imagine the blend of their capabilities and experience will drastically benefit Main Specialty.  We are quite delighted to partner with client, lengthy-phrase investors Dragoneer and SkyKnight who deliver a important network throughout the two the engineering and insurance policies industries.  Following the development and prosperous sale of Validus, we are also energized that Aquiline has again invested with us.”

Mr. Ebbel mentioned: “We are fired up to associate with Jeff, Ed and Enstar to build Core Specialty into an excellent specialty provider executing across equally admitted and E&S strains of enterprise.  This partnership has been almost a ten years in the earning, and we imagine this is the suitable time for the Firm to execute on an expansion approach with each a clean harmony sheet and clean funds.”&#13

Mr. Stad stated: “At Dragoneer, we focus on partnering with extraordinary teams that are developing genuinely differentiated enterprises in huge markets.  We look forward to functioning with Jeff and Ed as they construct a main specialty carrier at a time when we see incredibly constructive, lengthy-expression sector tendencies.  We have been impressed by Jeff and Ed’s track record of operational excellence, orientation in the direction of disciplined underwriting, and use of both of those info and technological innovation.”

Dominic Silvester, CEO of Enstar, explained: “We are impressed with the actions taken to date and Enstar is committed to acknowledging Main Specialty’s complete likely as a specialty professional residence & casualty insurer.  Enstar will do the job with the Company, as prospects warrant, in our ongoing acquisition routines and we are delighted to maintain our major expenditure in the Organization.  In August, we declared an exchange settlement with Trident V, L.P. and its affiliated resources managed by Stone Place Funds.  In the trade transaction, Enstar will acquire all the Trident V Funds’ desire in the recapitalized Core Specialty, ensuing in Enstar getting around 25{0fd7e6f75ade3d5ae67778d77dd996bcc8aca117c4e234285c3d1a0079535f7c} advantageous ownership of the Business, matter to regulatory approvals and closing circumstances.”

Jeff Greenberg, Chairman and CEO of Aquiline, observed: “Modern dynamic industry problems have established a will need for devoted underwriting potential across multiple E&S and admitted traces of organization.  We witnessed the strength of the Validus management team initial-hand and feel Jeff and Ed will construct a market place chief at Core Specialty.”

-Finishes-

NOTES TO EDITOR&#13

About Core Specialty
Main Specialty offers a diversified assortment of property and casualty insurance plan solutions for small to mid-sized firms.  From eight underwriting places of work spanning the U.S. the Company focuses on market markets, nearby distribution, and exceptional underwriting awareness, providing regular as very well as modern insurance policy solutions to satisfy the requires of its customers and brokers.  Main Specialty is an insurance keeping corporation running through StarStone Specialty Insurance Enterprise, a U.S. surplus and surplus traces insurance provider, and StarStone Countrywide Insurance policies Corporation, a U.S. admitted markets insurance company.  The Corporation is rated A- (Exceptional) by A.M. Very best.  For even further information and facts about Core Specialty, be sure to visit www.corespecialtyinsurance.com.

About Enstar Team Minimal
Enstar is a NASDAQ-detailed foremost world insurance policies team that features revolutionary capital launch remedies by its community of team organizations in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other worldwide spots.  A sector chief in finishing legacy acquisitions, Enstar has acquired about 100 corporations and portfolios since its development in 2001. For even further facts about Enstar, see www.enstargroup.com.

About SkyKnight Capital, L.P.
Established in 2015, SkyKnight manages over $1.5 billion in non-public fairness funds on behalf of institutional loved ones workplaces and main foundations and endowments.  SkyKnight tends to make extensive-term investments into large-good quality businesses in acyclical expansion sectors together with outstanding administration groups.
www.skyknightcapital.com

About Dragoneer Financial commitment Team
Dragoneer is a advancement-oriented expenditure company with more than $10 billion in prolonged-length money from numerous of the world’s premier endowments, foundations, sovereign wealth funds, allocators, and relatives offices.  Dragoneer has a historical past of partnering with administration groups in corporations characterized by sustainable differentiation and exceptional financial types.  The company has a international orientation and invests in market leaders, mainly in the economical services and technology sectors.
https://dragoneer.com/

About Aquiline Cash Partners LLC
Aquiline Funds Partners, launched in 2005, is a private investment company dependent in New York and London investing in enterprises throughout the financial expert services sector in economical technologies, insurance policy, investment management, enterprise expert services, credit and health care.  The business has $5.3 billion in property below administration as of December 31, 2019.  For far more info about Aquiline, its expenditure professionals, and its portfolio businesses, be sure to take a look at: www.aquiline.com.&#13

Cautionary Statement
This push launch has specific ahead-looking statements inside the this means of the Personal Securities Litigation Reform Act of 1995. These statements consist of statements relating to the intent, perception or present-day expectations of Main Specialty and its management group. Buyers are cautioned that any these kinds of ahead-seeking statements speak only as of the day they are produced, are not assures of long run effectiveness and entail threats and uncertainties, and that actual final results could differ materially from individuals projected in the forward-wanting statements as a result of many things. Main Specialty undertakes no obligation to update any created or oral forward-on the lookout statements or publicly announce any updates or revisions to any of the forward-wanting statements contained herein, to replicate any alter in its expectations with regard thereto or any alter in situations, circumstances, situations or assumptions fundamental this kind of statements, apart from as needed by regulation.

Get in touch with:
Sam Reinhardt
Affiliate Vice President
Prosek Associates
+1 646 818 9244
sreinhardt@prosek.com

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