NU Online News Service, Dec, 29, 11:39 a.m.EST

|

A.M. Best Co. has placed Clarendon Insurance Group and itsmember companies under review with negative implications.

|

The Oldwick, N.J.-based insurance rating service has placed the"A-minus (Excellent)" financial strength rating under review afterthe insurer announced that its parent company, Hannover Re, plannedto sell the operating companies of Clarendon to Enstar GroupLtd.

|

Best said the move reflects the uncertainties associated withthe sale and changes that may be brought on by a change inownership.

|

Clarendon consists of:

|

o Clarendon National Insurance Co.

|

o Clarendon America Insurance Co.

|

o Clarendon Select Insurance Co.

|

o Harbor Specialty Insurance Co.

|

The company is currently in run-off.

|

Hamilton, Bermuda-based Enstar said in a statement that itentered into an agreement to purchase Clarendon for approximately$200 million. The deal would be financed with a combination of abank loan and cash on hand.

|

In a filing with the Securities and Exchange Commission, Enstarsaid the final price is subject to adjustment "based upon theconsolidated surplus of the acquired company as of Dec. 31,2010.

|

Enstar acquires and manages insurance and reinsurance companiesin run-off, and also provides management and consulting services tothe insurance industry.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.