Attached files
file | filename |
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8-K/A - 8-K/A - Enstar Group LTD | d673594d8ka.htm |
EX-23.1 - EX-23.1 - Enstar Group LTD | d673594dex231.htm |
EX-99.1 - EX-99.1 - Enstar Group LTD | d673594dex991.htm |
EX-99.2 - EX-99.2 - Enstar Group LTD | d673594dex992.htm |
Exhibit 99.3
ENSTAR GROUP LIMITED
UNAUDITED PRO FORMA CONDENSED COMBINED CONSOLIDATED
FINANCIAL STATEMENTS
The following preliminary unaudited pro forma condensed combined consolidated balance sheet as of September 30, 2013 is based on the historical financial statements of Enstar Group Limited (Enstar) and the consolidated results of Atrium Underwriting Group Ltd. (Atrium). It is presented as if Enstar had completed the acquisition of Atrium as of September 30, 2013.
The following preliminary unaudited pro forma statements of earnings are based on the historical financial statements of Enstar, the consolidated results of Atrium, and the consolidated results of the following significant acquisitions that Enstar completed during 2013: (i) HSBC Insurance Company of Delaware and Household Life Insurance Company of Delaware and their subsidiaries: Household Life Insurance Company, Household Life Insurance Company of Arizona, and First Central National Life Insurance Company of New York (the acquired companies collectively, the Pavonia companies) and (ii) Arden Reinsurance Company Ltd. (Arden).
On November 25, 2013, Kenmare Holdings Ltd. (Kenmare), a wholly-owned subsidiary of Enstar, together with Trident V, L.P., Trident V Parallel Fund, L.P. and Trident V Professionals Fund, L.P. (collectively, Trident), completed the acquisition of Atrium from Arden Holdings Ltd. The purchaser of Atrium, Alopuc Limited, is 100% owned by Northshore Holdings Limited (Northshore), which is 60% owned by Kenmare and 40% owned by Trident.
On March 31, 2013, a wholly-owned subsidiary of Enstar completed the acquisition of the Pavonia companies. On September 9, 2013, Kenmare and Trident, through Northshore, completed the acquisition of Arden from Arden Holdings Ltd. Pavonia and Arden are not separately included in the preliminary unaudited pro forma condensed combined consolidated balance sheet as of September 30, 2013 because the acquisitions were reflected in Enstars actual balance sheet as of September 30, 2013, which was included within Enstars Quarterly Report on Form 10-Q filed with the U.S Securities and Exchange Commission (SEC) on November 7, 2013.
The preliminary unaudited pro forma condensed combined consolidated statement of earnings for the nine months ended September 30, 2013 is presented as if Enstar had completed the acquisitions of Pavonia, Arden, and Atrium as of January 1, 2013. The preliminary unaudited pro forma condensed combined consolidated statement of earnings for the year ended December 31, 2012 is presented as if Enstar had completed the acquisitions of Pavonia, Arden, and Atrium as of January 1, 2012.
The preliminary unaudited condensed combined consolidated pro forma financial information reflects the purchase of Atrium under the purchase method of accounting for business combinations and represents a current estimate of the financial information based on information available as of the date of this Current Report on Form 8-K/A. The preliminary unaudited pro forma information includes adjustments to record the assets and liabilities of Atrium at their estimated fair values under the purchase method of accounting for business combinations. The excess of the acquisition consideration over the fair value of the assets acquired and liabilities assumed, if any, is allocated to goodwill. A final determination of the acquisition consideration and fair values of Atriums assets and liabilities will be based on the actual net tangible and intangible assets of Atrium that existed on November 25, 2013, the date the transaction was completed. To the extent there are significant changes to Atriums business, the assumptions and estimates herein could change significantly.
The preliminary unaudited pro forma financial information is presented for informational purposes only under one set of assumptions and does not reflect the financial results of the combined companies had consideration been given to other assumptions or to the impact of possible operating efficiencies, asset dispositions, and other factors. Further, the pro forma financial information does not necessarily reflect the historical results of the combined companies that actually would have occurred had the transaction been in effect during the periods indicated or that may be obtained in the future.
The preliminary unaudited pro forma condensed combined consolidated financial information should be read in conjunction with:
| Enstars Managements Discussion and Analysis of Financial Condition and Results of Operations and historical financial statements, including the related notes, with respect to the year ended December 31, 2012 included in Enstars Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which was filed with the SEC on February 28, 2013; |
| Enstars subsequent Quarterly Reports on Form 10-Q filed with the SEC; |
| the historical financial statements of Atrium included in Exhibits 99.1 and 99.2 to this Current Report on Form 8-K/A; |
| the historical financial statements of the Pavonia companies included in Exhibit 99.1 to the Current Report on Form 8-K/A, which was filed with the SEC on June 14, 2013; and |
| the historical financial statements of Arden included in Exhibits 99.1 through 99.3 to the Current Report on Form 8-K/A, which was filed with the SEC on November 25, 2013. |
1
Enstar Group Limited
Preliminary Unaudited Pro Forma Condensed Combined Consolidated Balance Sheet
As of September 30, 2013
(Expressed in thousands of U.S. dollars)
Enstar | Atrium | Atrium Pro Forma Adjustments |
Combined | |||||||||||||||||
ASSETS |
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Total investments |
$ | 5,457,099 | $ | 209,449 | $ | | $ | 5,666,548 | ||||||||||||
Cash and cash equivalents |
520,560 | 104,912 | (24,800 | ) | (a | ) | 600,672 | |||||||||||||
Restricted cash and cash equivalents |
386,605 | | | 386,605 | ||||||||||||||||
Accrued interest receivable |
42,215 | | | 42,215 | ||||||||||||||||
Accounts receivable |
59,745 | 5,211 | | 64,956 | ||||||||||||||||
Premiums receivable |
153,623 | 56,038 | | 209,661 | ||||||||||||||||
Income taxes recoverable |
11,718 | | | 11,718 | ||||||||||||||||
Deferred tax asset |
41,478 | | | 41,478 | ||||||||||||||||
Reinsurance balances recoverable |
1,395,345 | 177,937 | (382 | ) | (b | ) | 1,572,900 | |||||||||||||
Funds held by reinsured companies |
235,156 | 19,054 | | 254,210 | ||||||||||||||||
Goodwill |
21,222 | 20,756 | 13,800 | (c | ) | 55,778 | ||||||||||||||
Intangible assets |
| 10,105 | 92,195 | (d | ) | 102,300 | ||||||||||||||
Other assets |
17,503 | 20,318 | 177 | (e | ) | 37,998 | ||||||||||||||
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TOTAL ASSETS |
8,342,269 | 623,780 | 80,990 | 9,047,039 | ||||||||||||||||
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LIABILITIES |
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Losses and loss adjustment expenses |
4,400,418 | 233,036 | (3,301 | ) | (f | ) | 4,630,153 | |||||||||||||
Policy benefits for life and annuity contracts |
1,288,148 | | | 1,288,148 | ||||||||||||||||
Unearned premium |
34,136 | 51,768 | | 85,904 | ||||||||||||||||
Insurance and reinsurance balances payable |
213,033 | 191,787 | | 404,820 | ||||||||||||||||
Accounts payable and accrued liabilities |
74,587 | 9,741 | | 84,328 | ||||||||||||||||
Income taxes payable |
19,635 | | | 19,635 | ||||||||||||||||
Deferred tax liabilities |
7,260 | 22,468 | 21,774 | (g | ) | 51,502 | ||||||||||||||
Loans payable |
355,663 | | 95,000 | (h | ) | 450,663 | ||||||||||||||
Other liabilities |
73,478 | 19,297 | 92,775 | |||||||||||||||||
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TOTAL LIABILITIES |
6,466,358 | 528,097 | 113,473 | 7,107,928 | ||||||||||||||||
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COMMITMENTS AND CONTINGENCIES |
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REDEEMABLE NONCONTROLLING INTEREST |
32,507 | | 63,200 | (i | ) | 95,707 | ||||||||||||||
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SHAREHOLDERS EQUITY |
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Share capital |
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Ordinary shares |
13,801 | 24,702 | (24,702 | ) | (j | ) | 13,801 | |||||||||||||
Non-voting convertible ordinary shares |
5,699 | | | 5,699 | ||||||||||||||||
Treasury stock |
(421,559 | ) | | | (421,559 | ) | ||||||||||||||
Additional paid-in capital |
961,270 | 2,161 | (2,161 | ) | (k | ) | 961,270 | |||||||||||||
Accumulated other comprehensive income |
14,676 | 15,953 | (15,953 | ) | (l | ) | 14,676 | |||||||||||||
Retained earnings |
1,043,996 | 52,867 | (52,867 | ) | (m | ) | 1,043,996 | |||||||||||||
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Total Enstar Shareholders Equity |
1,617,883 | 95,683 | (95,683 | ) | 1,617,883 | |||||||||||||||
Noncontrolling interests |
225,521 | | | 225,521 | ||||||||||||||||
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TOTAL SHAREHOLDERS EQUITY |
1,843,404 | 95,683 | (95,683 | ) | 1,843,404 | |||||||||||||||
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TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS EQUITY |
$ | 8,342,269 | $ | 623,780 | $ | 80,990 | $ | 9,047,039 | ||||||||||||
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2
Enstar Group Limited
Preliminary Unaudited Pro Forma Condensed Combined Consolidated Statement of Earnings
For the Nine Months Ended September 30, 2013
(Expressed in thousands of U.S. dollars)
Enstar | Pavonia | Pavonia Pro forma Adjustments |
Arden | Arden Pro forma Adjustments |
Sub-total Pro forma Combined |
Atrium | Atrium Pro forma Adjustments |
Pro forma Combined |
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INCOME |
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Net premiums earned |
$ | 165,931 | $ | 34,061 | $ | | $ | 15,314 | $ | | $ | 215,306 | $ | 55,960 | $ | | $ | 271,266 | ||||||||||||||||||||||||||||||
Consulting fees |
7,805 | | | | | 7,805 | 6,305 | | 14,110 | |||||||||||||||||||||||||||||||||||||||
Commission income |
| 826 | | 40 | | 866 | 13,251 | | 14,117 | |||||||||||||||||||||||||||||||||||||||
Net investment income |
70,224 | 13,307 | | 371 | | 83,902 | 3,377 | | 87,279 | |||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) |
39,211 | 82 | | 154 | | 39,447 | 647 | | 40,094 | |||||||||||||||||||||||||||||||||||||||
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283,171 | 48,275 | | 15,879 | | 347,326 | 79,540 | | 426,866 | ||||||||||||||||||||||||||||||||||||||||
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EXPENSES |
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Net reduction in ultimate loss and loss adjustment expense liabilities |
(26,638 | ) | | | 16,954 | 218 | (r | ) | (9,460 | ) | 7,976 | | (1,490 | ) | ||||||||||||||||||||||||||||||||||
Life and annuity policy benefits |
63,555 | 36,318 | 4,991 | (n | ), (o) | | | 104,864 | | | 104,864 | |||||||||||||||||||||||||||||||||||||
Acquisition costs |
| 6,529 | |
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1,720 | | 8,248 | 27,129 | | 35,377 | |||||||||||||||||||||||||||||||||||||
Salaries and benefits |
79,013 | | | | | 79,013 | | 19,468 | (w | ) | 98,481 | |||||||||||||||||||||||||||||||||||||
General and administrative expenses |
67,074 | 5,149 | | 105 | | 72,328 | 20,366 | (18,278 | ) | (x | ),(y) | 74,416 | ||||||||||||||||||||||||||||||||||||
Interest expense |
8,796 | | 442 | (p | ) | | 1,111 | (u | ) | 10,349 | | 2,449 | (z | ) | 12,798 | |||||||||||||||||||||||||||||||||
Net foreign exchange gains |
(3,994 | ) | | | (174 | ) | | (4,168 | ) | (354 | ) | | (4,522 | ) | ||||||||||||||||||||||||||||||||||
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187,806 | 47,996 | 5,433 | 18,605 | 1,329 | 261,169 | 55,117 | 3,639 | 319,924 | ||||||||||||||||||||||||||||||||||||||||
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EARNINGS BEFORE INCOME TAXES |
95,365 | 280 | (5,433 | ) | (2,726 | ) | (1,329 | ) | 86,157 | 24,423 | (3,639 | ) | 106,942 | |||||||||||||||||||||||||||||||||||
INCOME TAXES |
(13,726 | ) | (98 | ) | 1,902 | (q | ) | (40 | ) | | (11,962 | ) | (2,683 | ) | | (14,645 | ) | |||||||||||||||||||||||||||||||
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NET EARNINGS |
81,639 | 182 | (3,531 | ) | (2,766 | ) | (1,329 | ) | 74,195 | 21,740 | (3,639 | ) | 92,296 | |||||||||||||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interest |
(10,496 | ) | | | | 1,236 | (v | ) | (9,260 | ) | | (8,220 | ) | (aa | ) | (17,480 | ) | |||||||||||||||||||||||||||||||
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NET EARNINGS ATTRIBUTABLE TO ENSTAR GROUP LIMITED |
$ | 71,143 | $ | 182 | $ | (3,531 | ) | $ | (2,766 | ) | $ | (93 | ) | $ | 64,935 | $ | 21,740 | $ | (11,859 | ) | $ | 74,816 | ||||||||||||||||||||||||||
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Earning per share basic |
$ | 4.31 | $ | 3.93 | $ | 4.53 | ||||||||||||||||||||||||||||||||||||||||||
Earning per share diluted |
$ | 4.26 | $ | 3.89 | $ | 4.48 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic |
16,521,865 | 16,521,865 | 16,521,865 | |||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - diluted |
16,698,640 | 16,698,640 | 16,698,640 |
3
Enstar Group Limited
Preliminary Unaudited Pro Forma Condensed Combined Consolidated Statement of Earnings
For the Year Ended December 31, 2012
(Expressed in thousands of U.S. dollars)
Enstar | Pavonia | Pavonia Pro forma Adjustments |
Arden | Arden Pro forma Adjustments |
Sub-total Pro forma Combined |
Atrium | Atrium Pro forma Adjustments |
Pro forma Combined |
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INCOME |
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Net premiums earned |
$ | | $ | 189,937 | $ | | $ | 171,016 | $ | | $ | 360,953 | $ | 48,693 | $ | | $ | 409,646 | ||||||||||||||||||||||||
Consulting fees |
8,570 | | | | | 8,570 | 8,064 | | 16,634 | |||||||||||||||||||||||||||||||||
Other income |
| | | 55,011 | | 55,011 | | 55,011 | ||||||||||||||||||||||||||||||||||
Commission income |
| 3,955 | | | | 3,955 | 21,469 | | 25,424 | |||||||||||||||||||||||||||||||||
Net investment income |
77,760 | 64,340 | | 8,147 | | 150,247 | 4,211 | | 154,458 | |||||||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) |
73,612 | 21,995 | | 20,751 | | 1,16,358 | 1,169 | | 1,17,527 | |||||||||||||||||||||||||||||||||
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159,942 | 280,227 | | 254,925 | | 695,094 | 83,606 | | 778,700 | ||||||||||||||||||||||||||||||||||
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EXPENSES |
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Net reduction in ultimate loss and loss adjustment expense liabilities |
(241,764 | ) | |
2,977 |
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| 70,047 | 327 | (r) | (168,413 | ) | (12,196 | ) | | (180,609 | ) | ||||||||||||||||||||||||||
Life and annuity policy benefits |
| 149,719 | 19,964 | (n),(o) | | | 169,863 | | | 169,863 | ||||||||||||||||||||||||||||||||
Acquisition costs |
| | | 14,520 | | 14,520 | 34,643 | | 49,163 | |||||||||||||||||||||||||||||||||
Salaries and benefits |
100,473 | 17,566 | | | 6,791 | (s) | 124,830 | | 25,101 | (w) | 149,931 | |||||||||||||||||||||||||||||||
General and administrative expenses |
56,592 | 79,601 | | 22,388 | (6,791 | ) | (t) | 151,790 | 28,842 | (23,514 | ) | (x),(y) | 157,118 | |||||||||||||||||||||||||||||
Interest expense |
8,426 | | 2,250 | (p) | | 1,855 | (u) | 12,531 | | 3,685 | (z) | 16,216 | ||||||||||||||||||||||||||||||
Net foreign exchange losses (gains) |
406 | | | 1,071 | | 1,477 | (950 | ) | | 527 | ||||||||||||||||||||||||||||||||
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(75,867 | ) | 249,863 | 22,214 | 108,026 | 2,181 | 306,418 | 50,339 | 5,271 | 362,028 | |||||||||||||||||||||||||||||||||
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EARNINGS BEFORE INCOME TAXES |
235,809 | 30,364 | (22,214 | ) | 146,899 | (2,181 | ) | 388,676 | 33,267 | (5,271 | ) | 416,672 | ||||||||||||||||||||||||||||||
INCOME TAXES |
(44,290 | ) | (18,120 | ) | 7,775 | (q) | (159 | ) | | (54,794 | ) | (3,201 | ) | | (57,995 | ) | ||||||||||||||||||||||||||
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NET EARNINGS |
191,519 | 12,244 | (14,439 | ) | 146,740 | (2,181 | ) | 333,882 | 30,066 | (5,271 | ) | 358,677 | ||||||||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interest |
(23,502 | ) | | | | (58,565 | ) | (v) | (82,067 | ) | | (11,392 | ) | (aa) | (93,459 | ) | ||||||||||||||||||||||||||
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NET EARNINGS ATTRIBUTABLE TO ENSTAR GROUP LIMITED |
$ | 168,017 | $ | 12,244 | $ | (14,439 | ) | $ | 146,740 | $ | (60,746 | ) | $ | 251,815 | $ | 30,066 | $ | (16,663 | ) | $ | 265,218 | |||||||||||||||||||||
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Earning per share basic |
$ | 10.22 | $ | 15.32 | $ | 16.13 | ||||||||||||||||||||||||||||||||||||
Earning per share diluted |
$ | 10.10 | $ | 15.13 | $ | 15.94 | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic |
16,441,461 | 16,441,461 | 16,441,461 | |||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - diluted |
16,638,021 | 16,638,021 | 16,638,021 |
4
1. Acquisition Consideration Allocation
Under the acquisition method of accounting, the total acquisition consideration is allocated to the acquired tangible and identifiable intangible assets and assumed liabilities of Atrium based on their estimated fair values as of the closing of the transaction. The excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed, if any, is allocated to goodwill.
The preliminary unaudited pro forma adjustments included herein are subject to update as additional information becomes available and as additional analysis is performed. The final allocation of the purchase price will be determined after completion of a thorough analysis to determine the fair values of Atriums tangible and identifiable intangible assets and liabilities. Accordingly, the final amounts allocated to assets acquired and liabilities assumed could differ significantly from the amounts presented in the preliminary unaudited pro forma consolidated financial statements.
The total acquisition consideration is allocated to Atriums tangible and identifiable intangible assets and liabilities as of September 30, 2013 based on their preliminary fair values as follows:
September 30, 2013 | ||||
(in thousands of U.S. | ||||
dollars) | ||||
ASSETS |
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Investments |
$ | 184,449 | ||
Cash and cash equivalents |
104,912 | |||
Accounts receivable |
5,211 | |||
Premiums receivable |
56,038 | |||
Reinsurance balances recoverable |
177,555 | |||
Funds held by reinsured companies |
19,054 | |||
Other assets |
20,495 | |||
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TOTAL ASSETS |
567,714 | |||
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LIABILITIES |
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Losses and loss adjustment expenses |
229,735 | |||
Insurance and reinsurance balances payable |
191,787 | |||
Unearned premium |
51,768 | |||
Deferred taxes |
44,242 | |||
Other liabilities |
29,038 | |||
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TOTAL LIABILITIES |
546,570 | |||
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NET ASSETS ACQUIRED AT FAIR VALUE |
21,144 | |||
Goodwill |
34,556 | |||
Intangibles |
102,300 | |||
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ACQUISITION DATE FAIR VALUE |
$ | 158,000 | ||
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Approximately $102.3 million has been preliminarily allocated to amortizable intangible assets acquired. The amortization related to the preliminary fair value of amortizable intangible assets is reflected as a pro forma adjustment to the unaudited pro forma consolidated financial statements.
5
Identifiable intangible assets. The preliminary fair values of intangible assets were determined based on the provisions of Accounting Standards Codification (ASC) 805, Business Combinations, which defines fair value in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Intangible assets were identified that met either the separability criterion or the contractual-legal criterion described in ASC 805. The preliminary allocation to intangible assets is as follows:
September 30, 2013 | Estimated Useful Life | |||||
(in thousands of U.S. dollars) |
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Syndicate capacity |
45,300 | Indefinite | ||||
Management contract |
33,200 | Indefinite | ||||
Distribution channel |
17,000 | 15 Years | ||||
Brand |
6,800 | 10 years | ||||
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Total identified intangible assets |
$ | 102,300 | ||||
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Goodwill. Goodwill represents the excess of the acquisition consideration over the preliminary fair value of the underlying net tangible and intangible assets. Among the factors that contributed to a purchase price in excess of the fair value of the identifiable net tangible and intangible assets are the skill sets, operations and synergies that can be leveraged to enable the combined company to build a stronger enterprise. According to ASC 805, an assembled workforce does not represent the intellectual capital of this workforce, it only represents an existing collection of employees. As such, it is not an identifiable asset and is therefore recognized as part of goodwill.
In accordance with ASC 350, Intangibles-Goodwill and Other, goodwill will not be amortized, but instead will be tested for impairment at least annually and whenever events or circumstances have occurred that may indicate a possible impairment. If management determines that the value of goodwill has become impaired, Enstar will incur a charge to earnings for the amount of the impairment during the period in which the determination is made.
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2. Unaudited Pro Forma and Acquisition Accounting Adjustments
The unaudited pro forma financial information is not necessarily indicative of what the financial position and results from operations actually would have been had the transactions been completed at the dates indicated and includes adjustments which are preliminary and may be revised. Such revisions may result in material changes. The financial position shown herein is not necessarily indicative of what the past financial position of the combined companies would have been, nor necessarily indicative of the financial position of the post-transaction periods.
The following unaudited pro forma adjustments result from accounting for the transactions, including the determination of fair value of the assets, liabilities, and commitments which Enstar, as the acquirer for accounting purposes, will acquire and assume from the acquired companies. The descriptions related to these preliminary adjustments are as follows:
Balance Sheet:
Increase (decrease) as of September 30, 2013 |
||||||
(dollars in thousands) | ||||||
(a) | Adjustments to cash and cash equivalents: | |||||
To reflect cash received by Enstar from drawdown on its revolving credit facility (RCF) |
95,000 | |||||
To reflect cash received from redeemable noncontrolling interest for their 40% share of the acquisition consideration |
63,200 | |||||
To reflect cash paid to Atriums shareholders |
(158,000 | ) | ||||
To reflect pre-acquisition dividend paid to Atriums shareholders |
(25,000 | ) | ||||
(b) | Adjustment to reflect reinsurance balances recoverable at fair value | (382 | ) | |||
(c) | Adjustment to reflect the elimination of Atriums carried goodwill | (20,756 | ) | |||
Adjustment to reflect the goodwill recorded by Enstar on the completion of acquisition of Atrium | 34,556 | |||||
(d) | Adjustment to reflect the intangible assets recorded by Enstar on the completion of the acquisition of Atrium | |
102,300 |
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Adjustment to reflect elimination of Atriums carried intangible assets | (10,105 | ) | ||||
(e) | Adjustment to reflect other assets at fair value | 177 | ||||
(f) | Adjustment to reflect unpaid losses and loss adjustment expenses at fair value | (3,301 | ) | |||
(g) | Adjustment to reflect deferred tax liability on the goodwill and intangible assets recorded by Enstar on the completion of acquisition of Atrium | (21,774 | ) | |||
(h) | Adjustment to reflect the drawdown by Enstar of its RCF | 95,000 | ||||
(i) | Adjustment to reflect the fair value of the redeemable noncontrolling interests capital contribution | 63,200 | ||||
(j) | Adjustment to reflect the elimination of Atriums common stock | (24,702 | ) | |||
(k) | Adjustment to reflect the elimination of Atriums additional paid-in capital | (2,161 | ) | |||
(l) | Adjustment to reflect the elimination of Atriums accumulated other comprehensive income | (15,953 | ) | |||
(m) | Adjustment to reflect the elimination of Atriums retained earnings | (52,867 | ) |
Income Statement:
Increase (decrease) for the Nine Months Ended September 30, 2013 |
Increase (decrease) for Year Ended December 31, 2012 |
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(dollars in thousands) | ||||||||||
Pavonia Pro Forma Adjustments | ||||||||||
(n) |
Adjustment to amortize the fair value adjustment of intangible assets with a definitive life | (2,825 | ) | (11,300 | ) | |||||
(o) |
Net adjustment related to the unlocking and reassessment of the actuarial estimates of the business acquired | (2,166 | ) | (8,664 | ) |
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(p) | Adjustment to reflect the interest expense on the drawdown of the RCF | (442 | ) | (2,250 | ) | |||||
(q) | Adjustment to reflect income tax impact of pro forma adjustments based on an assumed tax rate of 35% | 1,902 | 7,775 | |||||||
Arden Pro Forma Adjustments | ||||||||||
(r) | Adjustment to amortize the fair value adjustment of intangible assets | (218 | ) | (327 | ) | |||||
(s) | Adjustment to reclassify salaries and benefits to conform presentation | | (6,791 | ) | ||||||
(t) | Adjustment to remove salary and benefits from general and administrative expenses to conform presentation | | 6,791 | |||||||
(u) | Adjustment to reflect the interest expense on the drawdown of the RCF | (1,111 | ) | (1,855 | ) | |||||
(v) | Adjustment to reflect the redeemable noncontrolling interests 40% share of Ardens pro forma loss (earnings) and cumulative adjustment entries | 1,236 | (58,565 | ) | ||||||
Atrium Pro Forma Adjustments | ||||||||||
(w) | Adjustment to reclassify salaries and benefits to conform presentation | (19,468 | ) | (25,101 | ) | |||||
(x) | Adjustment to remove salary and benefits from general and administrative expenses to conform presentation | 19,468 | 25,101 | |||||||
(y) | Adjustment to amortize the fair value adjustment of intangible assets | (1,190 | ) | (1,587 | ) | |||||
(z) | Adjustment to reflect the interest expense on the drawdown of the RCF | (2,449 | ) | (3,685 | ) | |||||
(aa) | Adjustment to reflect the redeemable noncontrolling interests share of Atriums pro forma earnings and adjustments | (8,220 | ) | (11,392 | ) |
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