Enstar in Shared Acquisition of Energy Reinsurance Companies

The Enstar Group, Inc. says it has signed a definitive agreement to join with co-investors to acquire two reinsurance subsidiaries of Petrofina S.A. Petrofina S.A. is part of TotalFina Elf S.A., an oil company with activities spanning all aspects of the energy and chemical industries.

The subsidiaries, Brittany Insurance Company Ltd., incorporated under the laws of Bermuda, and Compagnie Europeenne d'Assurances Industrielles S.A. (CEAI), a Belgian corporation, have been restructured to exclude risks related to Petrofina S.A. and its other subsidiaries.

Enstar, along with a private Bermuda based firm that has experience in managing and acquiring captive reinsurance operations, and an entity controlled by Trident II, L.P. have formed BH Acquisition Limited in Bermuda to acquire Brittany and CEAI.

Trident II, L.P., which is managed by Marsh & McLennan Capital, Inc., makes private equity and equity related investments in the global insurance, reinsurance and related industries. In exchange for its US$9.4 million investment, Enstar will receive half of the voting stock and a 33 percent economic interest in BH Acquisition.

``This transaction is an important first step in the implementation of Enstar's operating plans for the future,'' said Nimrod Frazer, Enstar chairman, president and CEO. ``We are extremely pleased with the specific opportunities presented by Brittany and CEAI, but even more pleased with our new relationships with our partners in the reinsurance business.''