Enstar to reinsure Zurich's $500m US asbestos portfolio

Bermuda-based insurance group Enstar has signed an agreement with Zurich Insurance Group to reinsure its US asbestos and environmental liability insurance portfolios.

Enstar’s subsidiary will assume gross insurance reserves of approximately $500 million relating to 1986 and prior year business.

The deal is a part of Zurich's strategy to eliminate or reduce exposure to legacy lines of business. Last year, the insurer disposed of its pre-2007 UK legacy employers’ liability policies portfolio to Bermuda-based specialist acquirer of legacy insurance portfolios Catalina.

The closing of the transaction with Enstar is subject to regulatory approval and other closing conditions.