Enstar Enters into Loss Portfolio Transfer Agreement with
HAMILTON, Bermuda, May 20, 2022 (GLOBE NEWSWIRE) — Enstar Group Limited (NASDAQ:ESGR) today announced that one of its wholly owned subsidiaries has entered into a previously announced agreement for a loss portfolio transfer to basis with Aspen Insurance Holdings Limited and its subsidiaries for their 2019 and prior business (the “LPT”). Enstar will assume net loss reserves of $3.12 billion, subject to a limit of $3.57 billion.
The existing adverse development hedge between the parties that was entered into in June 2020, under which Enstar assumed $770 million of loss reserves (the “ADC”), has been absorbed into the LPT.
As a result of the LPT, Enstar assumed an additional net loss reserve of $2.35 billion, with a diverse mix of property, liability and specialty lines, in return for an additional $2.39 premium. billions of dollars, and will assume claims control.
The amount of reserves for net losses assumed, as well as the premium and limit amounts provided for in the LPT agreement, will be adjusted for claims paid between October 1, 2021 and the closing date of the transaction, in accordance with the terms of the contract. .
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.
Enstar is a leading NASDAQ-listed global (re)insurance group providing capital release solutions through its network of group companies in Bermuda, USA, UK, Continental Europe, Australia and other countries. A market leader in completing legacy acquisitions, Enstar has acquired more than 110 companies and portfolios since its inception in 2001. For more 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. Such statements include statements concerning the current intention, belief or expectations of Enstar and its management team. Investors are cautioned that these 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 forward-looking statements as a result of various factors, including those related to the integration of run-off acquisitions. Material risk factors relating to Enstar can be found under the heading “Risk Factors” in our Form 10-K for the year ended December 31, 2021 and are incorporated herein by reference. Further, Enstar undertakes no obligation to update any written or oral forward-looking statements or to publicly announce any update or revision to any of the forward-looking statements contained herein, to reflect any changes in its expectations. in this regard or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.
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