Enstar Group said late Tuesday one of its wholly owned subsidiaries entered into a conditional pact with a unit of QBE Insurance Group to reinsure U.S. multi-line property and casualty business. Shares drifted slightly lower intraday. The completion of the transaction is subject to regulatory approvals, the company said in a statement.
Enstar’s subsidiary will assume gross reinsurance reserves of about $919 million — net reserves of $444 million — relating to the portfolio, which primarily includes workers’ compensation, construction defect, and general
liability discontinued lines of business.
Under the reinsurance transaction, Enstar’s subsidiary will pledge a portion of the premium as collateral to a unit of QBE.
By Caroline Williams