Enstar Group Limited Announces Reinsurance of £957 Million of RSA’s Legacy U.K. Employer’s Liability Business
February 07 2017 - 6:40PM
Enstar Group Limited (Nasdaq:ESGR) announced today that one of its
wholly owned subsidiaries has signed an agreement to reinsure RSA
Insurance Group PLC’s (“RSA”) U.K. employers’ liability legacy
business.
Enstar’s subsidiary will assume gross insurance
reserves of approximately £957 million (approximately $1.2
billion), relating to 2005 and prior year business, which
primarily consists of U.K. employers’ liability reserves. Net
insurance reserves are approximately £834 million (approximately
$1.0 billion) and the reinsurance premium payable to Enstar’s
subsidiary is £799 million. The transaction is subject to
finalizing and effecting certain security arrangements.
Following the initial reinsurance, which will
transfer the economics of the portfolio up to the policy’s limits,
the parties will pursue a portfolio transfer of this business under
Part VII of the Financial Services and Markets Act 2000, which
would provide legal finality for RSA’s obligations. The
transfer is subject to court, regulatory and other
approvals.
Commenting on the transaction, Dominic Silvester,
Enstar’s Chief Executive Officer, said, “RSA’s sizable portfolio is
an attractive opportunity for Enstar that substantially expands our
presence in the U.K. employers’ liability area, a market that has
seen a great deal of activity recently. We welcome the
opportunity to partner with RSA, a leading multinational insurance
firm, in structuring and executing a transaction for this large
legacy portfolio.”
About Enstar Group
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 75
companies and portfolios since its formation in 2001, and has over
$12 billion in total assets. 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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