Enstar enjoys solid growth in Q2; reveals details of Coca-Cola deal
Enstar, a Bermuda-based holding company focussed on acquiring re/insurance companies in run-off, experienced substantial growth in the second quarter of 2016, largely attributed to acquisitions and reinsurance transactions it has made in the last year.
Enstar reported net premiums earned of $226.9 million for the three-month period ending June 30, a 7 percent increase from $212 million for the same period in 2015.
Enstar made pre-tax profits of $58 million for this period compared with $24 million for the same period last year.
Its profits were boosted by healthy gains in its investment income which increased to $54 million in the quarter compared with $34 million in the same period a year earlier.
In its results, the company also highlighted some notable new business it has secured recently.
In March, Enstar completed its transaction with Allianz to reinsure portfolios of Allianz's run-off business.
Via a subsidiary, it has reinsured 50 percent of certain portfolios of workers' compensation, construction defect, and asbestos, pollution, and toxic tort business originally held by Fireman's Fund Insurance Company, and assumed net reinsurance reserves of approximately $1.1 billion.
In addition, it has entered into a claims consulting agreement with San Francisco Reinsurance Company, an affiliate of Allianz, with respect to the entire $2.2 billion portfolio, including the 50% share retained by affiliates of Allianz.
In August, it also entered into a reinsurance transaction with The Coca-Cola Company under which it reinsured certain of Coca-Cola’s retention and deductible risks under its subsidiaries’ US workers’ compensation, auto liability, general liability, and product liability insurance coverage.
It assumed total gross reserves of $109.1 million, received total assets of $102.7 million and recorded a deferred charge of $6.4 million, included in other assets.
