World News: 23:40 GMT Tuesday 7th February 2017. [Enstar Group Limited via Globe Newswire via SPi World News]
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.”
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 .
Contact: Mark Smith
Telephone: +1 (441) 292-3645
Globe Newswire: 23:40 GMT Tuesday 7th February 2017
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