Enstar Group Limited Announces Completion of Loss Portfolio Transfer Reinsurance Transaction with Reciprocal of America
January 15 2015 - 5:00PM
Enstar Group Limited ("Enstar") (Nasdaq:ESGR) announced today that
its wholly owned subsidiary, Providence Washington Insurance
Company, has completed a loss portfolio transfer reinsurance
transaction with Reciprocal of America (in Receivership)
("Reciprocal") and its Deputy Receiver relating to a portfolio of
workers' compensation business that has been in run-off since 2003.
The loss portfolio transfer reinsurance transaction was
completed after receipt of the approval of the Commonwealth of
Virginia State Corporation Commission and the State of Rhode Island
Department of Business Regulation.
Dominic Silvester, Enstar's Chief Executive Officer, said, "I am
pleased that the Reciprocal transaction has completed. The
liabilities assumed are within our core competency of workers
compensation run-off. The transaction itself was innovative in
that it was undertaken with a company in receivership and whose
previous insolvency had triggered obligations of a number of
Guaranty Associations. As a result of the transaction, Reciprocal
should be able to proceed to a more timely resolution of its estate
than would have otherwise been the case. We enjoyed working
closely with the Deputy Receiver and her Counsel at Cantilo &
Bennett, L.L.P. to achieve this excellent outcome for Reciprocal
and its policyholders."
Providence Washington Insurance Company has taken on liabilities
of approximately $163.8 million (subject to certain post-closing
adjustments).
Enstar Group Limited and its operating subsidiaries acquire and
manage diversified insurance businesses through a network of
service companies in Bermuda, the United States, the United
Kingdom, Continental Europe, Australia, and other international
locations. Enstar is a market leader in completing legacy
acquisitions, having acquired over 60 companies and portfolios
since its formation in 2001. Enstar's active underwriting
businesses include the Atrium group of companies, which manage and
underwrite specialist insurance and reinsurance business for
Lloyd's Syndicate 609, and the Torus group of companies, an A-
rated global specialty insurance group with multiple global
underwriting platforms. For further information about Enstar, see
www.enstargroup.com.
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements include statements regarding the intent,
belief or current expectations of Enstar and its management team.
Investors are cautioned that any such forward-looking statements
speak only as of the date they are made, are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those projected in the
forward-looking statements as a result of various factors.
Important risk factors regarding Enstar may be found under
the heading "Risk Factors" in Enstar's Form 10-K for the year ended
December 31, 2013 and Form 10-Q for the three and six months ended
June 30, 2014, and are incorporated herein by reference.
Furthermore, Enstar undertakes no obligation to update any written
or oral forward-looking statements or publicly announce any updates
or revisions to any of the forward-looking statements contained
herein, to reflect any change in its expectations with regard
thereto or any change in events, conditions, circumstances or
assumptions underlying such statements, except as required by
law.
CONTACT: Richard J. Harris
Telephone: (441) 292-3645
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