Bermuda-based run-off specialist Enstar has agreed a $290 million reinsurance deal with a subsidiary of Voya Financial.
Enstar will reinsurer all of ReliaStar Life Insurance Company’s run-off workers compensation carve-out and occupational accident business in the US and Canada through a subsidiary.
ReliaStar has transferred assets into two reinsurance collateral trusts securing the obligations of Enstar's subsidiary under the coinsurance agreements and Enstar has assumed total gross discounted reinsurance reserves of approximately $290 million.
In addition, the Canada Pension Plan Investment Board has acquired a 9.9 percent stake in Enstar from First Reserve.
The board will be granted contractual shareholder rights, including a board representation right.
Ken Moore, managing director of First Reserve and a member of Enstar's board of directors, will step down from Enstar's board upon completion of the transaction.
Dominic Silvester, Enstar's chief executive officer, said: "This transaction adds sizeable reserves to our growing legacy property and casualty business in the US. We are very familiar with this business, having worked with the team at Voya for many years, and we were pleased to be able to provide them with an effective reinsurance solution.”
“We are gratified by CPPIB's interest in Enstar and are pleased that they have pursued the acquisition of a significant stake in our company.
“We have known the team at CPPIB for several years and have tremendous respect for their organisation. I believe that they will be a valuable partner for Enstar, and we look forward to a long and productive relationship together.
Enstar, ReliaStar Life Insurance Company, Canada Pension Plan Investment Board, North America, Bermuda