Enstar to enter US$1.9bn LPT with QBE

Enstar Group has reached an agreement for a ground-up loss portfolio transfer with a number of QBE Insurance Group subsidiaries on a diversified portfolio of business, covering international and North America financial lines, European and North American reinsurance portfolios, and several US discontinued programmes.

In the transaction, Enstar’s subsidiaries will assume net loss reserves from QBE of US$1.9bn and will provide approximately US$900m of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.

Dominic Silvester, Enstar’s CEO, said: “This transaction, our second significant collaboration with leading insurance group, QBE, represents a unique and emerging business opportunity for Enstar. In addition to covering QBE’s discontinued lines, we are providing our expertise on seasoned liabilities within ongoing lines of business as a source of value creation. This innovative structure requires strong alignment of interests, and we have secured that with our long-standing partner QBE.”

Upon completion, a portion of the portfolio currently underwritten via QBE’s Lloyd’s syndicates 386 and 2999 will be transferred into Enstar syndicate 2008.

The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions.

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