NEW YORK (AP) — Enstar Group Ltd., which acquires and manages insurance and reinsurance companies, and private investment firm Stone Point Capital LLC are buying specialty insurer Torus Insurance Holdings Ltd. in a cash-and-stock deal totaling $692 million.

Enstar, which is based in Bermuda, said Tuesday that it will pay about $69 million in cash as well as issue about $346 million in stock to help fund the transaction. Stone Point will fund approximately $277 million of the purchase price through an equity co-investment.

Enstar will own 60 percent of Torus, while Stone Point will own 40 percent.

Torus' biggest stockholders, private equity firms First Reserve and Corsair Capital, will receive Enstar shares and cash in the deal. Remaining Torus shareholders will receive cash.

First Reserve will then own about an 11.5 percent stake in Enstar and will be nominated for a seat on Enstar's board.

The acquisition is expected to close by year's end.

Enstar shares finished at $138 on Monday.