Enstar Group Limited Announces Reinsurance of QBE Legacy U.S. Business
Dec 6, 2016
HAMILTON, Bermuda, Dec. 06, 2016 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ:ESGR) announced today that one of its wholly owned subsidiaries has entered into a conditional agreement with a subsidiary of QBE Insurance Group Limited to reinsure U.S. multi-line property and casualty business. Completion of the transaction is subject to receipt of regulatory approvals.
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.
Under the reinsurance transaction, Enstar's subsidiary will pledge a portion of the premium as collateral to a subsidiary of QBE. Enstar will also provide additional collateral and a limited parental guarantee.
As part of the transaction, a subsidiary of Enstar will provide administrative services on the reinsured portfolio.
Commenting on the transaction, Dominic Silvester, Enstar's Chief Executive Officer, said:
"This significant transaction with QBE, a widely recognized industry leader, affirms Enstar's position as a provider of choice for complex reinsurance solutions. The confidence QBE has shown in partnering with us also attests to our market-leading reputation as managers of workers' compensation and property and casualty legacy portfolios."
Enstar is a multi-faceted insurance group that offers innovative capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar is a market leader in completing legacy acquisitions, having acquired over 70 companies and portfolios since its formation in 2001. Enstar's active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd's Syndicate 609. For further information about Enstar, see www.enstargroup.com.
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. Important risk factors regarding Enstar can be found under the heading "Risk Factors" in Enstar's Form 10-K for the year ended December 31, 2015 and Form 10-Q for the quarterly period ended September 30, 2016, and are incorporated herein by reference. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.
Contact: Mark Smith Telephone: +1 (441) 292-3645