Enstar signs $237m loss portfolio transfer agreement
Enstar Group has signed a loss portfolio transfer agreement with an Australian motor insurer to reinsure 80 per cent of its compulsory third party insurance liabilities for motor vehicles.
Bermuda-based legacy re/insurer Enstar said one of its wholly owned subsidiaries will cover accident years 2021 and prior for RACQ, one of Queensland's largest motor insurers.
Under the reinsurance, which is effective as of July 1, 2022, RACQ will cede net reserves of approximately $237 million, and Enstar’s subsidiary will provide approximately $132 million of cover in excess of the ceded reserves. The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions.
Dominic Silvester (pictured), Enstar’s Chief Executive Officer, said: “This transaction with RACQ, one of the largest auto insurers in Queensland, is well aligned with our core competencies and further demonstrates Enstar’s expertise in providing reinsurance solutions for our partners.
"Australia is an important jurisdiction and very much part of our focus as we look to deliver long-term value to our clients worldwide.”