Enstar Announces Business Updates
Aug 19, 2022
Enstar Enters into Master Agreement Regarding Enhanzed Re
- commute or novate all of the reinsurance contracts written by Enhanzed Re, except for one reinsurance transaction related to a block of annuity policies written by an affiliate of Allianz (the “Annuities Portfolio”), which the parties will cooperate in good faith to novate to a third party on commercially reasonable terms;
- repay the
$70.0 millionof subordinated notes issued by Enhanzed Re to an affiliate of Allianz; and
- distribute Enhanzed Re’s excess capital to Cavello Bay and Allianz in accordance with their respective equity ownership.
The completion of the transactions contemplated by the Master Agreement is subject to customary closing conditions, including the receipt of certain regulatory approvals. The transactions will eliminate Enstar's direct exposure to catastrophe business and are expected to result in an approximate
During the six months ending
In addition to the strong July month end investment results, market conditions in August continue to improve which has favourably impacted our risk assets. As of today, equity markets were up and credit spreads have continued to improve. All in yields remain elevated year-to-date which allows us to invest new premium at attractive levels. Regardless of near-term volatility, we continue to have conviction that our investment portfolio is well positioned to deliver long term value.
Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in
Cautionary Statement Regarding Forward Looking Statements
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. In particular, the parties may not be able to complete the proposed transactions due to the failure of the closing conditions being satisfied or for other reasons. In addition, the capital markets remain volatile and there can be no assurance that the quarter to date unrealized investment gains will be maintained through the end of the quarter. Important risk factors regarding Enstar can be found under the heading "Risk Factors" in Enstar’s Form 10-K for the year ended
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Source: Enstar Group Limited