One of Enstar Group’s wholly-owned subsidiaries has signed an agreement to reinsure RSA Insurance Group UK’s employers’ liability legacy business.
Enstar’s subsidiary will assume gross insurance reserves of approximately GBP957 million (approximately USD1.2 billion), relating to 2005 and prior year business, which primarily consists of UK employers’ liability reserves.
Net insurance reserves are approximately GBP834 million (approximately USD1.0 billion) and the reinsurance premium payable to Enstar’s subsidiary is GBP799 million. The transaction is subject to finalising and effecting certain security arrangements.
Following the initial reinsurance, which will transfer the economics of the portfolio up to the policy’s limits, the parties will pursue a portfolio transfer of this business under Part VII of the Financial Services and Markets Act 2000, which would provide legal finality for RSA’s obligations. The transfer is subject to court, regulatory and other approvals.
Dominic Silvester (pictured), Enstar’s chief executive officer, says: “RSA’s sizeable portfolio is an attractive opportunity for Enstar that substantially expands our presence in the UK employers’ liability area, a market that has seen a great deal of activity recently. We welcome the opportunity to partner with RSA, a leading multinational insurance firm, in structuring and executing a transaction for this large legacy portfolio.”
