Enstar Completes Loss Portfolio Transfer With RACQ

Rhea-AI Summary

Enstar Group Limited has closed a Loss Portfolio Transfer agreement with RACQ Insurance Limited, reinsuring 80% of RACQ's motor vehicle compulsory third party insurance liabilities. Enstar's subsidiary will provide approximately USD$130 million of cover in excess of the ceded reserves.

Positive

• Enstar Group Limited has successfully closed a significant reinsurance agreement with RACQ Insurance Limited, which will result in Enstar providing approximately USD$130 million of cover. This could positively affect Enstar's stock price as it demonstrates the company's ability to secure profitable deals and expand its business.

Negative

• None.

HAMILTON, Bermuda, June 02, 2023 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) announced today that one of its wholly-owned subsidiaries has closed a previously announced Loss Portfolio Transfer agreement with RACQ Insurance Limited (“RACQ”) to reinsure 80% of RACQ’s motor vehicle compulsory third party insurance liabilities, covering accident years 2021 and prior.

Under the reinsurance agreement, which is effective as of July 1, 2022, RACQ will cede net reserves of approximately AUD$ 360 million (USD$ 235 million), and Enstar’s subsidiary will provide approximately AUD$ 200 million (USD$ 130 million) of cover in excess of the ceded reserves. The amount of net loss reserves ceded, as well as the settlement and limit amounts provided in the agreement, will be adjusted for claims paid between the effective date and the closing date of the transaction, pursuant to the terms of the contract.

Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.

About Enstar

Enstar is a NASDAQ-listed leading global (re)insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe and Australia. A market leader in completing legacy acquisitions, Enstar has acquired over 115 companies and portfolios since its formation. For further information about Enstar, see www.enstargroup.com.

Contacts

For Investors: Matthew Kirk (investor.relations@enstargroup.com)

For Media: Jenna Kerr (communications@enstargroup.com)

Contact:      Enstar Communications

Telephone: +1 (441) 292-3645

What is the agreement between Enstar Group Limited and RACQ Insurance Limited?

The agreement is a Loss Portfolio Transfer agreement, in which Enstar reinsures 80% of RACQ's motor vehicle compulsory third party insurance liabilities.

What is the financial impact of the agreement?

Enstar's subsidiary will provide approximately USD$130 million of cover in excess of the ceded reserves, resulting in potential growth for the company.

What are the benefits of this agreement for Enstar Group Limited?

This agreement showcases Enstar's ability to secure profitable reinsurance deals and expand its business, which could positively impact the company's stock price.