Enstar Group Ltd has completed its acquisition of a US subsidiary of fellow Bermudian-based company Maiden Holdings Ltd.

Enstar, a company that specialises in acquiring and managing companies and portfolios in run-off, said last night it paid out $272.4 million to buy Maiden Reinsurance North America, Inc.

Maiden Re North America is a diversified insurance company, domiciled in Missouri, that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance.

As previously disclosed, the transaction included novation and retrocession agreements pursuant to which the company’s subsidiary, Cavello Bay Reinsurance Ltd, assumed certain Maiden Re business in exchange for a ceding commission.

The $272.4 million represents the adjusted purchase price less the ceding commission.

At closing, Enstar assumed approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves.

Enstar is a market leader in completing legacy acquisitions, having acquired over 80 companies and portfolios since its formation in 2001.

Enstar’s active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609.

Enstar Group shares gained $2.34, or 1.46 per cent on the Nasdaq Stock Exchange yesterday, while Maiden Holdings rose four cents, or 2.7 per cent, to close on $1.52.