Enstar to buy HSBC's North American closed-life insurance ops

Thu Sep 6, 2012 9:55am EDT

Tourists pass an HSBC bank in central London, May 8, 2012. REUTERS/Olivia Harris

Tourists pass an HSBC bank in central London, May 8, 2012.

Credit: Reuters/Olivia Harris

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(Reuters) - Enstar Group Ltd (ESGR.O) said it would buy the U.S. and Canadian closed-life insurance operations of HSBC Finance, a unit of HSBC Holdings Plc (HSBA.L), for a base price of $181 million.

Bermuda-based Enstar, which buys insurers that are no longer writing new business, bought workers' compensation insurer SeaBright Holdings Inc SBX.N for about $252 million in cash last Monday.

Enstar is backed by hedge fund manager J. Christopher Flowers and Goldman Sachs's (GS.N) private equity arm GS Capital Partners.

The company expects to finance the purchase through a combination of cash and its revolving credit facility, Enstar said in a statement.

Enstar shares were trading flat at $94.00 on Thursday morning on the Nasdaq.

(Reporting by Aman Shah in Bangalore; Editing by Sreejiraj Eluvangal)

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