Enstar to reinsure CNA’s legacy workers’ comp portfolio
Enstar Group, via Cavello Bay Reinsurance, one of its wholly owned subsidiaries, has signed an agreement with Continental Casualty Company, part of CNA Financial Corporation (CNA), to reinsure a legacy portfolio of excess workers’ compensation business.
Under the terms of the transaction, which will be deemed effective as of January 1, 2020, CNA will cede to Cavello approximately $690 million of net excess workers' compensation liabilities relating to business written in 2007 and prior under a retroactive reinsurance agreement with an aggregate limit of $1 billion.
The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and other closing conditions, at which time CNA expects to recognize an after-tax loss of approximately $12 million.
Dominic Silvester, Enstar’s CEO, said: “Our agreement today to partner with CNA, an industry leader, expands our portfolio of U.S. excess workers’ compensation legacy reserves, a line of business we have considerable experience and success in managing.”
Dino Robusto, chairman and CEO of CNA, commented: "The transfer of legacy reserves supports CNA's continued commitment to advancing our core business. We are pleased to be working with an excellent partner in Enstar in pursuit of our goals."
