Enstar in $465m reinsurance deal with Zurich and Lyft

Bermuda-based insurance group Enstar, through one of its wholly owned US subsidiary, has entered into a novation agreement with affiliates of ridesharing company Lyft and certain underwriting companies of Zurich North America.

Enstar will reinsure legacy automobile business underwritten by Zurich between October 1, 2015 and September 30, 2018 and reinsured by Lyft’s wholly owned subsidiary, Pacific Valley Insurance Company (PVIC) for consideration of $465 million.

Under a separate agreement, PVIC will provide retrocession coverage to Enstar in excess of a $816 million limit.

The transaction is expected to be completed in early April, subject to various closing conditions.