Enstar Group Limited Announces Reinsurance of QBE Legacy U.S. Business
December 06 2016 - 10:30PM
Enstar Group Limited (NASDAQ:ESGR) announced today that one of its
wholly owned subsidiaries has entered into a conditional agreement
with a subsidiary of QBE Insurance Group Limited to reinsure U.S.
multi-line property and casualty business. Completion of the
transaction is subject to receipt of regulatory approvals.
Enstar’s subsidiary will assume gross reinsurance reserves of
approximately $919 million (net reserves of $444 million) relating
to the portfolio, which primarily includes workers’ compensation,
construction defect, and general liability discontinued lines of
business.
Under the reinsurance transaction, Enstar’s subsidiary will
pledge a portion of the premium as collateral to a subsidiary of
QBE. Enstar will also provide additional collateral and a
limited parental guarantee.
As part of the transaction, a subsidiary of Enstar will provide
administrative services on the reinsured portfolio.
Commenting on the transaction, Dominic Silvester, Enstar’s Chief
Executive Officer, said:
“This significant transaction with QBE, a widely recognized
industry leader, affirms Enstar’s position as a provider of choice
for complex reinsurance solutions. The confidence QBE has shown in
partnering with us also attests to our market-leading reputation as
managers of workers’ compensation and property and casualty legacy
portfolios.”
About Enstar
Enstar is a multi-faceted insurance group that offers innovative
capital release solutions and specialty underwriting capabilities
through its network of group companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. Enstar is a market leader in
completing legacy acquisitions, having acquired over 70 companies
and portfolios since its formation in 2001. Enstar's active
underwriting businesses include the StarStone group of companies,
an A- rated global specialty insurance group with multiple global
underwriting platforms, and the Atrium group of companies, which
manage and underwrite specialist insurance and reinsurance business
for Lloyd's Syndicate 609. For further information about Enstar,
see www.enstargroup.com.
Cautionary Statement
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.
Investors are cautioned that any such forward-looking statements
speak only as of the date they are made, 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 can be found under the
heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2015 and Form 10-Q for the quarterly period ended
September 30, 2016, and 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.
Contact: Mark Smith
Telephone: +1 (441) 292-3645
Enstar (NASDAQ:ESGR)
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