Legacy specialist Enstar Group’s wholly owned subsidiaries have completed a Loss Portfolio Transfer (LPT) transaction with certain subsidiaries of QBE Insurance Group on a diversified portfolio of business.
The transaction covers International and North America financial lines, European and North American reinsurance portfolios, and several US discontinued programs.
Under the LPT, Enstar’s subsidiaries assumed net loss reserves from QBE of $1.9 billion, and will provide approximately $900 million of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.
The pair explain that the amount of net loss reserves assumed, alongside the settlement and limit amounts provided in the master agreement, will be adjusted for claims paid between January 1st, 2023 and the closing date of the transaction, pursuant to the terms of the contract.
The transaction has now closed after receipt of regulatory approvals and satisfaction of various other closing conditions.