Enstar has entered an agreement with subsidiaries of ProSight Global to provide reinsurance relating to 2019 and prior year business.
The transaction is subject to the closing of ProSight’s acquisition by international investment management firm TowerBrook and Further Global Capital Management, a private equity firm with a focus on the financial services industry.
Affiliates of TowerBrook and Further Global have signed a definitive merger agreement to acquire all of the outstanding shares of common stock of ProSight Global in an all-cash transaction valued at $586 million.
This reinsurance transaction involving Enstar will comprise a ground up loss portfolio transfer of ProSight’s discontinued workers’ compensation and excess workers’ compensation lines of business and an adverse development cover on ProSight’s diversified mix of general liability classes of business.
In the transaction, ProSight will cede net loss reserves of approximately $500 million and Enstar’s subsidiary will provide additional aggregate limit of $250 million.