Enstar completes reinsurance deal with QBE

A subsidiary of Enstar Group has completed a transaction to reinsure the US multi-line property/casualty business of QBE Insurance Group. The company has obtained the regulatory approval.

Enstar had announced earlier that its 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 has pledged a portion of the premium as collateral to a subsidiary of QBE. Enstar has also provided additional collateral and a limited parental guarantee.

As part of the transaction, a subsidiary of Enstar provides administrative services on the reinsured portfolio.

Dominic Silvester, Enstar’s chief executive officer, had earlier commented: “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.”