HAMILTON, Bermuda, Feb. 07, 2017
(GLOBE NEWSWIRE) -- 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.