Enstar Announces Reinsurance of Zurich Australia’s New South Wales Motor Vehicle Compulsory Third Party Insurance Business
February 22 2018 - 7:52PM
Enstar Group Limited (NASDAQ:ESGR) announced today that one of its
wholly-owned subsidiaries has signed an agreement with an
Australian subsidiary of Zurich Insurance Group to reinsure its New
South Wales Motor Vehicle Compulsory Third Party (CTP) insurance
business.
Under the reinsurance, which is effective as of January 1, 2018,
Enstar's subsidiary will assume gross reinsurance reserves of
approximately AUD$350 million (approximately $275 million) relating
to the CTP insurance business.
Following the initial reinsurance, which will transfer the
economics of the CTP insurance business to Enstar’s subsidiary, the
parties will pursue a portfolio transfer of the CTP insurance
business under Division 3A of Part III of Australia’s Insurance Act
1973 (Cth), which would provide legal finality for Zurich. The
Division 3A transfer is subject to court, regulatory and other
approvals.
Commenting on the transaction, Dominic Silvester, Enstar's Chief
Executive Officer, said:
“This transaction with Zurich builds on Enstar’s successful
management of other large Australian legacy portfolios. It
significantly enhances our footprint in Australia as we continue to
grow our non-life run-off operations in key insurance markets. We
appreciate the opportunity to partner with Zurich to offer a
reinsurance solution for its CTP portfolio.”
About Enstar
Enstar is a multi-faceted insurance group, with over $14 billion
in assets, 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 80 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, 2016 and in Enstar’s Form 10-Q for the nine months
ended September 30, 2017, 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: Guy BowkerTelephone:
+1 (441) 292-3645
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