Enstar Completes the Reinsurance of $690 Million of Continental Casualty Company’s Legacy Excess Workers’ Compensation Business

(Neutral)

Rhea-AI Summary

Enstar Group Limited (NASDAQ: ESGR) announced the successful completion of a significant reinsurance transaction with Continental Casualty Company (CNA) on February 5, 2021. This deal involves the cession of net insurance reserves amounting to approximately $690 million, related to excess workers’ compensation business from 2007 and earlier. The transaction was finalized after receiving necessary regulatory approvals and meeting other closing conditions.

Positive

Successful completion of a $690 million reinsurance transaction enhances Enstar's portfolio.
The transaction strengthens Enstar's position as a leader in legacy acquisitions.

Negative

None.

News Market Reaction – ESGR

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+0.80% Session move

In the trading session that priced this news, ESGR gained 0.80%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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02/05/2021 - 05:15 PM

HAMILTON, Bermuda, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) announced today that one of its wholly owned subsidiaries has completed a transaction with Continental Casualty Company (“CNA”) to reinsure a legacy portfolio of excess workers’ compensation business.

In the transaction, CNA ceded net insurance reserves to an Enstar subsidiary of approximately $690 million not inclusive of any roll forward adjustments, relating to 2007 and prior year business.

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 insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

Contact:	Enstar Communications
Telephone:	+1 (441) 292-3645

FAQ

What is the recent transaction involving ESGR?

Enstar Group completed a reinsurance transaction with CNA, involving $690 million in net insurance reserves.

When was the transaction by ESGR completed?

The transaction was completed on February 5, 2021.

What type of business is involved in ESGR's recent transaction?

The transaction involves a legacy portfolio of excess workers' compensation business.

What does the transaction mean for ESGR's financial standing?

The completion of the transaction enhances ESGR's portfolio and strengthens its leadership in legacy acquisitions.