A wholly owned subsidiary of Enstar Group Limited has reinsured a diversified portfolio of legacy insurance underwritten by Hiscox Syndicate 3624.
The Loss Portfolio Transfer (LPT) between Enstar’s Syndicate 2008 and Hiscox includes the majority of Hiscox USA’s surplus lines broker business.
Through the arrangement, Hiscox has ceded net insurance reserves of roughly $520 million at December 31st, 2020 relating to 2019 and prior-year business.
This announcement comes soon after Enstar completed the sale of StarStone Underwriting Limited and its managed Lloyd’s Syndicate 1301 to Inigo Limited.
Recently, Enstar reported consolidated net earnings of $183.2 million for the opening quarter of 2021.
For Hiscox, this deal adds an estimated 10 points to its Bermuda Solvency Capital Ratio and will lead to a P&L charge of $26 million in H1 2021.