Enstar Group Limited Announces Closure of Transaction to Reinsure $1.1 Billion of Allianz’s Legacy U.S. Business
01 April 2016 - 7:15AM
Enstar Group Limited (NASDAQ:ESGR) announced today that one of its
wholly owned subsidiaries completed a previously announced
transaction to reinsure portfolios of Allianz Re’s U.S. run-off
business.
The closing followed receipt of regulatory approval and
satisfaction of closing conditions. In the transaction, Enstar
assumes net reinsurance reserves of approximately $1.1 billion, by
reinsuring 50% of certain workers’ compensation, construction
defect, and asbestos, pollution and toxic tort business originally
held by Fireman’s Fund Insurance Company.
Consideration for the transaction includes Enstar transferring
approximately $110 million to a reinsurance collateral trust, which
was funded from available cash on hand, and the provision of a
limited parental guarantee. The combined monetary total of the
support offered by Enstar will initially be capped at $270
million.
As part of the transaction, Enstar is providing consulting
services with respect to the entire $2.2 billion portfolio,
including Allianz Re’s retained 50% share.
About Enstar
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.
Cautionary Statement
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 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
Enstar (NASDAQ:ESGR)
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