A subsidiary of legacy specialist Enstar Group has secured a deal with ProSight Global to provide reinsurance relating to 2019 and prior year business.
In signing the deal, ProSight will receive a ground up loss portfolio transfer of discontinued workers’ compensation and excess workers’ compensation lines, as well as adverse development cover on a diversified mix of general liability classes.
As part of the transaction, Enstar’s subsidiary assumes net loss reserves of approximately $500 million, and will provide an additional aggregate limit of $250 million.
“Enstar’s partnership with ProSight underlines the increasing versatility of legacy risk solutions as a source of value creation for insurers seeking to accelerate their growth in an attractive underwriting environment,” said Dominic Silvester, Enstar’s Chief Executive Officer.
“This reinsurance opportunity is aligned with our core competencies, allowing us to provide ProSight with a solution for repositioning its capital as part of its broader strategic transaction with TowerBrook and Further Global.”
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions, including the simultaneous closing of ProSight’s merger with affiliates of investment management firm TowerBrook and private equity firm Further Global.