Enstar Group Limited has announced an agreement to reinsure Zurich Insurance Group’s New South Wales Motor Vehicle Compulsory Third Party (CTP) insurance business.
A wholly-owned subsidiary of the Bermuda insurance group will assume AUD$350 million of gross reinsurance reserves relating to the CTP insurance business as of January 1, 2018.
Enstar’s Chief Executive Officer (CEO), Dominic Silvester, said of the agreement: “This transaction with Zurich builds on Enstar’s successful management of other large Australian legacy portfolios. It significantly enhances our footprint in Australia as we continue to grow our non-life run-off operations in key insurance markets.
“We appreciate the opportunity to partner with Zurich to offer a reinsurance solution for its CTP portfolio.”
The initial reinsurance will see the economics of the CTP insurance business transfer to Enstar’s subsidiary, after which the parties will transfer the portfolio of the CTP business to secure legal finality for Zurich.
