A subsidiary of Bermuda-based run-off specialist Enstar Group has completed a loss portfolio transfer reinsurance transaction with Reciprocal of America.
Providence Washington Insurance Company has taken on liabilities of approximately $163.8 million of workers' compensation business that has been in run-off since 2003.
The loss portfolio transfer reinsurance transaction was completed after receipt of the approval of the Commonwealth of Virginia State Corporation Commission and the State of Rhode Island Department of Business Regulation.
Dominic Silvester, Enstar's chief executive officer, said: "I am pleased that the Reciprocal transaction has completed. The liabilities assumed are within our core competency of workers compensation run-off.
“The transaction itself was innovative in that it was undertaken with a company in receivership and whose previous insolvency had triggered obligations of a number of Guaranty Associations. As a result of the transaction, Reciprocal should be able to proceed to a more timely resolution of its estate than would have otherwise been the case.”
Enstar, Reciprocal of America, Bermuda, Reinsurance, Washington Insurance Company, Insurance, Dominic Silvester, North America