Enstar Completes Loss Portfolio Transfer With QBE

Rhea-AI Summary

Enstar Group Limited (NASDAQ: ESGR) has successfully executed a Loss Portfolio Transfer transaction with subsidiaries of QBE Insurance Group Limited. This transaction involves net loss reserves of $1.9 billion from QBE, with Enstar providing approximately $900 million of cover exceeding ceded reserves. The business covered includes various International and North American financial lines, European reinsurance portfolios, and certain discontinued US programs. The terms of the agreement stipulate adjustments based on claims made between January 1, 2023, and the closing date. The completion of the transaction followed necessary regulatory approvals and other closing conditions being met.

Positive

• Closed a Loss Portfolio Transfer transaction worth $1.9 billion in net loss reserves.
• Assumed liabilities that offer potential for future capital release.
• Transaction involves a diversified portfolio across multiple regions and lines of business.

Negative

• None.

HAMILTON, Bermuda, April 07, 2023 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) announced today that its wholly-owned subsidiaries have closed a Loss Portfolio Transfer transaction with certain subsidiaries of QBE Insurance Group Limited (“QBE”) on a diversified portfolio of business, covering International and North America financial lines, European and North American reinsurance portfolios, and several US discontinued programs.

Enstar’s subsidiaries assumed net loss reserves from QBE of $1.9 billion and will provide approximately $900 million of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018. The amount of net loss reserves assumed, as well as the settlement and limit amounts provided in the master agreement, will be adjusted for claims paid between January 1, 2023 and the closing date of the transaction, pursuant to the terms of the contract.

Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.

About Enstar

Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 110 companies and portfolios since formation of its Bermuda-based holding company in 2001. For further information about Enstar, see www.enstargroup.com.

Contact:      Enstar Communications
Telephone: +1 (441) 292-3645

FAQ

What was the amount of loss reserves transferred in the Enstar-QBE transaction?

Enstar assumed net loss reserves of $1.9 billion from QBE.

What is the total cover provided by Enstar in the Loss Portfolio Transfer with QBE?

Enstar will provide approximately $900 million of cover in excess of the ceded reserves.

What types of businesses are included in the Enstar-QBE transaction?

The transaction includes International and North American financial lines, European and North American reinsurance portfolios, and several discontinued US programs.

When did Enstar complete the Loss Portfolio Transfer transaction with QBE?

The transaction was completed after receiving regulatory approvals and satisfying closing conditions.

What is the significance of the Loss Portfolio Transfer for Enstar's portfolio management?

It enables Enstar to manage legacy liabilities while potentially freeing up capital for future use.