Legacy acquirer Enstar Group Limited has entered into a new reinsurance deal with Liberty Mutual Insurance Europe SE (LMIE) that will see it assume approximately $420 million of legacy business.
Under the terms of the agreement, Enstar will reinsure a number of insurance portfolios that were previously written out of LMIE’s London branch.
These include a US energy liability portfolio, as well as portfolios relating to US construction liability and US homebuilders liability.
One of Enstar’s wholly owned subsidiaries will assume the $420 million of gross insurance reserves that relate to 2019 and prior year business.
Currently, the transaction remains subject to regulatory approval and other closing conditions.
In total, Enstar, which operates a network of companies throughout Bermuda, the US, the UK, Europe and Australia, has acquired over 100 companies and portfolios since its formation in 2001.
The firm reported consolidated net earnings of $615.0 million in the third quarter of 2020 and $896.7 million for the first nine months of the year, improving on its performance in 2019.
