Enstar Reinsures Hiscox Legacy Portfolio

Rhea-AI Summary

Enstar Group Limited (NASDAQ: ESGR) has completed a significant Loss Portfolio Transfer with Hiscox Ltd, involving the reinsurance of a diversified portfolio of legacy insurance business. This transaction includes the cession of net insurance reserves totaling approximately $520 million as of December 31, 2020, predominantly related to business from 2019 and earlier. This move reinforces Enstar's position as a leader in capital release solutions within the global insurance market.

Positive

• Completed a Loss Portfolio Transfer with Hiscox, enhancing portfolio diversification.
• Ceded net insurance reserves of approximately $520 million, strengthening fiscal standing.

Negative

• None.

HAMILTON, Bermuda, June 03, 2021 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) announces today that one of its wholly owned subsidiaries has completed a Loss Portfolio Transfer with Hiscox Ltd (“Hiscox”), pursuant to which Enstar’s Syndicate 2008 has reinsured a diversified portfolio of legacy insurance business underwritten by Hiscox Syndicate 3624, including the majority of Hiscox USA’s surplus lines broker business.

Through the transaction, Hiscox has ceded net insurance reserves of approximately $520 million at 31st December 2020 relating to 2019 and prior-year business.

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 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

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

FAQ

What is the significance of the Loss Portfolio Transfer for ESGR?

The Loss Portfolio Transfer with Hiscox allows ESGR to enhance diversification and solidify its financial position by acquiring $520 million in net insurance reserves.

How does the reinsurance transaction impact ESGR's financials?

This transaction positively impacts ESGR by improving its insurance reserves and capital management, key aspects of its business strategy.

What was the value of the net insurance reserves ceded in the Loss Portfolio Transfer?

The net insurance reserves ceded in the Loss Portfolio Transfer amounted to approximately $520 million as of December 31, 2020.