Enstar Group Limited Announces Closure of Transaction to Reinsure $1.1 Billion of Allianz's Legacy U.S. Business
March 31 2016 - 4:28PM
HAMILTON, Bermuda, March 31, 2016 (GLOBE NEWSWIRE)
-- Enstar Group Limited (NASDAQ:ESGR) announced today that one of
its wholly owned subsidiaries completed a previously announced
transaction to reinsure portfolios of Allianz Re's U.S. run-off
business.
The closing followed receipt of regulatory
approval and satisfaction of closing conditions. In the
transaction, Enstar assumes net reinsurance reserves of
approximately $1.1 billion, by reinsuring 50% of certain workers'
compensation, construction defect, and asbestos, pollution and
toxic tort business originally held by Fireman's Fund Insurance
Company.
Consideration for the transaction includes Enstar
transferring approximately $110 million to a reinsurance collateral
trust, which was funded from available cash on hand, and the
provision of a limited parental guarantee. The combined monetary
total of the support offered by Enstar will initially be capped at
$270 million.
As part of the transaction, Enstar is providing
consulting services with respect to the entire $2.2 billion
portfolio, including Allianz Re's retained 50% share.
About Enstar
Enstar is a multi-faceted insurance group that
offers innovative capital release solutions and specialty
underwriting capabilities through its network of group 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 70
companies and portfolios since its formation in 2001. Enstar's
active underwriting businesses include the StarStone group of
companies, an A- rated global specialty insurance group with
multiple global underwriting platforms, and the Atrium group of
companies, which manage and underwrite specialist insurance and
reinsurance business for Lloyd's Syndicate 609. For further
information about Enstar, see www.enstargroup.com.
Cautionary
Statement
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 can be found under the heading "Risk Factors" in
Enstar's Form 10-K for the year ended December 31, 2015 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: Mark Smith
Telephone: +1 (441) 292-3645
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Enstar Group Limited via Globenewswire
HUG#1999602
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