Arden Holdings Updates on Selling Atrium Underwriting Group and Arden Reinsurance to Enstar Group [Manufacturing Close – Up]

Arden Holdings announced yesterday that it has entered into definitive agreements with Enstar Group for the sale of its remaining subsidiaries, Atrium Underwriting Group and Arden Reinsurance Company.

Atrium is an underwriting business at Lloyd's of London, which manages Syndicate 609 and provides approximately one quarter of the syndicate's capital. Atrium specializes in accident and health, aviation, marine property, non-marine property, professional liability, property and casualty binding authorities, reinsurance, upstream energy, war and terrorism insurance, cargo and fine art. Arden Reinsurance is a Bermuda-based reinsurance company that provides reinsurance to Atrium and is currently in the process of running off certain other discontinued businesses.

According to a release, Atrium will be acquired for approximately $183.0 million and Arden Reinsurance will be acquired for approximately $79.6 million. The two transactions are governed by separate purchase agreements and the acquisition of each company is not conditioned on the acquisition of the other. Completion of each transaction is subject to various customary closing conditions and governmental and regulatory approvals. Both transactions are expected to close by the end of 2013.

The sales of Atrium and Arden Reinsurance represent the disposition of Arden's remaining operating businesses. Arden was founded as Ariel Holdings Ltd. in 2005. In April 2012, Arden completed the sale of Ariel Re'sBermuda-based insurance and reinsurance operations to the Goldman Sachs Group, Inc. and the sale of its Zurich-based credit and surety operations to Arch Capital Group Ltd. .

Arden Holdings was formed in December 2005 as a Bermuda-based catastrophe reinsurer in the aftermath of Hurricanes Katrina, Rita and Wilma.

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