Enstar subsidiary to reinsure RSA business
Bermuda-based Enstar Group has announced that one of its subsidiaries has signed an agreement to reinsure RSA Insurance Group UK employers' liability legacy business.
The Enstar subsidiary, which was not named, will assume gross insurance reserves of approximately £957 million, relating to 2005 and prior year business, which primarily consists of UK employers' liability reserves. Net insurance reserves are approximately £834 million and the reinsurance premium payable to Enstar's subsidiary is £799 million.
Following the initial reinsurance, which will transfer the economics of the portfolio up to the policy's limits, the parties will pursue a portfolio transfer of this business under Part VII of the Financial Services and Markets Act 2000, which would provide legal finality for RSA's obligations. The transfer is subject to court, regulatory and other approvals.
Commenting on the transaction, Dominic Silvester, CEO of Enstar, said, "RSA's sizable portfolio is an attractive opportunity for Enstar that substantially expands our presence in the UK employers' liability area, a market that has seen a great deal of activity recently. We welcome the opportunity to partner with RSA, a leading multinational insurance firm, in structuring and executing a transaction for this large legacy portfolio."