A subsidiary of Bermuda-based re/insurance, run-off and legacy transaction specialist Enstar Group Limited has signed an agreement with a subsidiary of global insurer Zurich that will see it reinsure a book of US asbestos and environmental liability insurance portfolios.
Roughly $500 million of gross insurance reserves related to 1986 and prior year business will be assumed by the Enstar subsidiary.
The closing of the deal is subject to regulatory approval and other closing conditions.
This transaction follows a decision last year by Zurich to transfer the majority of its UK employers’ liability (UK EL) policies for 2006 and prior underwriting years transferred to Catalina.
The major portfolio transfer represented a significant step forward in Zurich’s efforts to simplify its business and comprised gross liabilities of $2 billion relating principally to industrial disease related claims, including asbestos.