Enstar enters $275m reinsurance agreement with Zurich

Bermuda-based Enstar Group has signed an agreement with an Australian subsidiary of Zurich Insurance Group to reinsure its New South Wales Motor Vehicle Compulsory Third Party (CTP) insurance business.

Under the agreement, which is effective as of January 1, 2018, Enstar's subsidiary will assume gross reinsurance reserves of approximately A$350 million (approximately $275 million) relating to the CTP insurance business.

Following the initial reinsurance, which will transfer the economics of the CTP insurance business to Enstar’s subsidiary, the parties will pursue a portfolio transfer of the CTP insurance business which would provide legal finality for Zurich.

Commenting on the transaction, Dominic Silvester, Enstar's chief executive officer, said: “This transaction with Zurich builds on Enstar’s successful management of other large Australian legacy portfolios. It significantly enhances our footprint in Australia as we continue to grow our non-life run-off operations in key insurance markets. We appreciate the opportunity to partner with Zurich to offer a reinsurance solution for its CTP portfolio.”

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