QBE agrees second LPT with Enstar

Re/insurer QBE has agreed a loss portfolio transfer of $376 million with Bermuda-based legacy insurer Enstar Group. 

The re/insurer, which has Bermuda-based reinsurance operations, will receive $175 million of cover in excess of the ceded reserves from Enstar in the transaction.  

Enstar said the transaction involves a diversified portfolio of US commercial liability and workers’ compensation business, largely underwritten on recently discontinued programs. 

Enstar said it is familiar with the majority of the business and has existing exposure to the programmes through a previous transaction with QBE in 2023 when it assumed net loss reserves from QBE of $1.9 billion and provided $900 million of cover.

Dominic Silvester, Enstar’s chief executive officer, said: “We are extremely pleased to build upon a valuable relationship with our long-standing partner, QBE. This transaction demonstrates our commitment to developing deep partnerships with global, leading insurers, and enables us to apply our best-in-class claims handling capabilities in the US to a portfolio where we hold significant expertise and experience.”

Enstar announced last month that it was being bought by private equity investment company Sixth Street and other investors for $5.1 billion. 

The transaction is expected to complete in the fourth quarter of 2024.

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