Enstar to reinsure QBE’s US multi-line P/C business

A subsidiary of Enstar Group has entered into a conditional agreement with a subsidiary of QBE Insurance Group to reinsure US multi-line property/casualty business.

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.

Dominic Silvester, Enstar’s chief executive, 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.”