Enstar Group Ltd. will acquire specialty insurer Torus InsuranceHoldings Ltd. in a combination cash and equity transaction worth$692 million.

At the same time, Torus named Dermot O'Donohoe as its new CEO,replacing Clive Tobin who is retiring.

Torus, founded in 2008, is a global specialty insurer employingover 500 people in 14 offices worldwide. It is a holding companyfor six insurance vehicles, including Lloyd's Syndicate 1301.

Hamilton, Bermuda-based Enstar acquires and manages insuranceand reinsurance companies in run-off and portfolios of business inrun-off. In addition, it provides management, consulting and otherservices to the insurance and reinsurance industry.

Recently, the company made its move into live underwriting withthe planned acquisition of Atrium Underwriting Group and Atrium'sreinsurance business, Arden Reinsurance Co., for $263 million.

Enstar expects to complete both the Atrium and Torustransactions by the end of this year.

The private equity company Stone Point Capital is backing theacquisition, supplying $277 million in capital. At the close of thetransaction, Enstar will own 60 percent of Tours and Stone Pointwill own 40 percent.

The major shareholders of Torus, the private equity firms FirstReserve and Corsair Capital, will receive a combination of Enstarshares and cash. The remaining Torus shareholders will receivecash.

As for the change in management, Tobin says he is leaving as“the company entered the next stage of its development and this isthe appropriate time.” Tobin joined Torus in 2009 as CEO afterworking for a number of years at XL.

O'Donohoe joined Torus in 2009 as chief underwriting officer,global specialty and chief operating officer of Torus in the UnitedKingdom and Europe. He became chief executive of TorusInternational in 2011. He has more than 25 years of insuranceexperience across international and Americas markets.