A subsidiary of Enstar Group Limited has signed an agreement with subsidiaries of reinsurance giant Munich Re to acquire certain portfolios from their Australian branches of Great Lakes Insurance and HSB Engineering Insurance.
An announcement on the deal notes that it primarily consists of long tail insurance business.
In the transaction, which is subject to regulatory and Federal Court of Australia approval, Enstar’s subsidiary will receive total assets of roughly AUD 228.2 million (USD 156.2 million) for assuming the associated net insurance reserves.
In order to provide legal finality for Munich Re, the parties will pursue a portfolio transfer of the insurance business under Division 3A of Part III of Australia’s Insurance Act 1973.
