Enstar Group Limited Announces Completion of Acquisition

HAMILTON, Bermuda, Feb. 23  /PRNewswire-FirstCall/ -- Enstar Group Limited ("Enstar") (NASDAQ:ESGRD) and Oceania Holdings Ltd, its wholly-owned subsidiary, today announced the closing of the acquisition of Inter-Ocean Holdings Ltd. ("Inter-Ocean").  The total purchase price was approximately $57 million, which was funded with available cash on hand and the incurrence of approximately $26.8 million in new bank debt.

Inter-Ocean owns two reinsurers, one based in Bermuda and one based in Ireland.  Both companies wrote international reinsurance and had in place retrocessional policies providing for the full reinsurance of all of the risks they assumed. In April 2005, the board of directors of Inter-Ocean decided to have both companies cease underwriting new business and placed them into run-off. Enstar has been providing management services to Inter-Ocean for approximately 13 months.

Enstar, a Bermuda company, acquires and manages insurance and reinsurance companies in run-off and provides management, consultancy and other services to the insurance and reinsurance industry.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Important risk factors regarding Enstar may be found under the heading "Risk Factors" in Enstar's registration statement on Form S-4 filed by it with the SEC in connection with its acquisition of The Enstar Group, Inc. Those risk factors are incorporated herein by reference. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law. 

DATASOURCE: Enstar Group Limited



CONTACT:  Richard J. Harris, [phone], for Enstar Group Limited

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