Enstar Group has announced that one of its wholly-owned subsidiaries has signed a Loss Portfolio Transfer (LPT) agreement with RACQ Insurance to reinsure 80% of RACQ’s motor vehicle Compulsory Third Party (CTP) insurance liabilities covering accident years 2021 and prior.
RACQ will cede net reserves of approximately AUD$360 million, while Enstar’s subsidiary will provide approximately AUD$200 million of cover in excess of the ceded reserves.
Dominic Silvester, Enstar’s Chief Executive Officer, commented, “This transaction with RACQ, one of the largest auto insurers in Queensland, is well aligned with our core competencies and further demonstrates Enstar’s expertise in providing reinsurance solutions for our partners.
“Australia is an important jurisdiction and very much part of our focus as we look to deliver long-term value to our clients worldwide.”
The agreement is set to take effect on July 1, 2022. The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions.
Just last week, Enstar announced that its wholly-owned subsidiaries had reached an agreement for a ground-up LPT with certain subsidiaries of QBE on a diversified portfolio of business.
Enstar stated that this business covers International and North American financial lines, European and North American reinsurance portfolios, and several US discontinued programs.
For this deal, it was disclosed that the firm’s subsidiaries will assume net loss reserves from QBE of $1.9bn and will provide $900m of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.
