Bermuda based insurance, reinsurance and run-off specialist Enstar Group has announced the completion of a reinsurance-to-close transaction that sees it assume liabilities from re/insurer Neon Underwriting’s syndicate at Lloyd’s.
Enstar’s Lloyd’s of London managing agency, StarStone Underwriting Limited, agreed with Neon that Enstar’s Syndicate 2008 would enter into the reinsurance-to-close transaction, assuming the liabilities as at the 2015 underwriting year from Neon’s Syndicate 2468.
The liabilities consist of legacy business that consisted of policies underwritten between 2008 and 2015.
Enstar will assume net reinsurance reserves of £417.1 million (around $558 million) from the portfolio and gross reserves of £504.2 million (approximately $674.5 million).
Once the transaction is completed, expected to be in the first quarter of 2018, Enstar will take over all claims handling and provide complete finality on these legacy liabilities to Neon.
Dominic Silvester, Enstar’s Chief Executive Officer, commented on the arrangement, “This transaction will build on an established relationship with Neon, having completed a successful reinsurance-to-close in 2016. It brings Enstar’s total completed legacy transactions in Lloyd’s to 21 since inception, which confirms our position as a leading provider of legacy solutions to the Lloyd’s market.”
Yesterday, a similar transaction was announced by Hamilton Underwriting which reached an agreement with Randall & Quilter (R&Q) and AXA DBIO to support a Reinsurance to Close (RITC) for its syndicate 2014 prior years of account.
