Enstar Group Limited Announces Reinsurance and Administration Transaction With Sun Life
October 01 2015 - 7:51AM
Enstar Group Limited ("Enstar") (Nasdaq:ESGR) announced today that
on September 30, 2015, it, through wholly owned subsidiaries,
entered into two 100% reinsurance agreements with Sun Life
Assurance Company of Canada and its U.S. Branch, respectively
(together, "Sun Life"), and a related administration agreement. In
the transaction, an Enstar subsidiary has reinsured all of the
run-off workers compensation carve-out and occupational accident
business of Sun Life.
Enstar has assumed total net discounted reinsurance reserves and
payable balances of approximately $139.4 million in the
transaction. Enstar has provided limited parental guarantees
supporting certain obligations of its subsidiaries. The amount of
the guarantees will increase or decrease over time under certain
circumstances, but will always be subject to an overall maximum cap
of approximately $36.8 million with respect to the reinsurance
liabilities.
Dominic Silvester, Enstar's Chief Executive Officer, said, "We
have continued to add U.S. legacy reserves, including to our large
portfolio of workers compensation business. We know this particular
block of business extremely well, having managed it on behalf of
Sun Life since 1999, and are pleased to have partnered with them to
complete this transaction."
Enstar Group Limited and its operating subsidiaries acquire and
manage diversified insurance businesses through a network of
service 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 65 companies and portfolios
since its formation in 2001. Enstar's active underwriting
businesses include the Atrium group of companies, which manage and
underwrite specialist insurance and reinsurance business for
Lloyd's Syndicate 609, and the StarStone group of companies, an A-
rated global specialty insurance group with multiple global
underwriting platforms. For further information about Enstar, see
www.enstargroup.com.
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 may be found under the
heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2014 and Form 10-Q for the fiscal quarter ended June
30, 2015, 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
(441) 292-3645
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