Bermuda-based Enstar Group has announced that one of its wholly owned subsidiaries has completed a previously announced transaction to reinsure multi-line property and casualty business of QBE Insurance Group. The closing followed receipt of regulatory approval and satisfaction of closing conditions.
Enstar did not disclose which of its subsidiaries was involved in the transaction, which was first unveiled in December 2016.
Under the terms of the transaction Enstar's subsidiary will assume gross reinsurance reserves of approximately $919 million (net reserves of $444 million) relating to the portfolio, which primarily includes workers' compensation, construction defect, and general liability discontinued lines of business.
Enstar's subsidiary has also pledged a portion of the premium as collateral to a subsidiary of QBE and has also provided additional collateral and a limited parental guarantee. A subsidiary of Enstar provides administrative services on the reinsured portfolio.
Enstar Group, QBE Insurance Group, Reinsurance, Dominic Silvester, Bermuda, North America