Enstar closes $1.7bn Australian legacy deal

Bermuda-based Enstar Group has closed its $1.7 billion legacy transaction with Insurance Australia  Group, following receipt of regulatory approvals and closing conditions.

Under the terms of the adverse development cover agreement, Enstar will provide the equivalent of US$442 million of excess cover over the equivalent of US$1.7 billion of underlying reserves for long-tail insurance business. 

The portfolio includes Product & Public Liability, Compulsory Third-Party Motor, Professional Risks and Workers’ Compensation for losses incurred on or prior to June 30, 2023.

The deal was announced in June, when Enstar chief executive officer Dominic Silvester said: "This transaction demonstrates our strong capabilities in the Australian market as we continue to strengthen our position as the partner of choice across global markets."

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