Enstar in loss portfolio transfer deal with RACQ Insurance
Bermuda-based Enstar Group has closed a loss portfolio transfer agreement with RACQ Insurance.
The agreement, which is effective as of July 1, 2022, sees one of Enstar's wholly-owned subsidiaries reinsure 80% of RACQ’s motor vehicle compulsory third party insurance liabilities, covering accident years 2021 and prior.
RACQ will cede net reserves of approximately A$ 360 million ($ 235 million), and Enstar’s subsidiary will provide approximately A$ 200 million ($ 130 million) of cover in excess of the ceded reserves.
The amount of net loss reserves ceded, as well as the settlement and limit amounts provided in the agreement, will be adjusted for claims paid between the effective date and the closing date of the transaction, pursuant to the terms of the contract.
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.
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