Enstar USA is engaged in the operation of several equity affiliates in the financial services industry. The company, through the operations of its partially owned equity affiliates, Castlewood Holdings and B.H. Acquisition, and their subsidiaries, acquires and manages insurance and reinsurance companies in run-off. The management of these businesses includes claims administration, adjustment and settlement together with the collection of reinsurance recoveries. Castlewood Holdings also provides management, consulting and other services to the insurance and reinsurance industry for both fixed and success-based fee arrangements. As of Dec. 31, 2004, Enstar had one wholly owned subsidiary, Enstar Financial Services, which is inactive. The Enstar USA has a location in Montgomery, Ala.