Enstar subsidiary signs Australian reinsurance deal
Enstar Group has revealed that one of its subsidiaries has signed a reinsurance agreement with an Australian subsidiary of Zurich Insurance Group covering its New South Wales motor vehicle compulsory third party (CTP) insurance business.
Under the terms of the deal, which became effective as of January 1, 2018, Enstar's subsidiary will assume gross reinsurance reserves of approximately A$350 million (approximately $275 million) relating to the CTP insurance business.
Enstar said that following the initial reinsurance, which will transfer the economics of the CTP insurance business to Enstar's subsidiary, the parties will pursue a portfolio transfer of the CTP insurance business under Division 3A of Part III of Australia's Insurance Act 1973, which would provide legal finality for Zurich. The Division 3A transfer is subject to court, regulatory and other approvals.
"This transaction with Zurich builds on Enstar's successful management of other large Australian legacy portfolios,” said Dominic Silvester, Enstar's chief executive officer. “It significantly enhances our footprint in Australia as we continue to grow our non-life run-off operations in key insurance markets. We appreciate the opportunity to partner with Zurich to offer a reinsurance solution for its CTP portfolio."
