Enstar Announces Reinsurance of Zurich Australia's New South Wales Motor Vehicle Compulsory Third Party Insurance Business
February 22 2018 - 8:07PM
HAMILTON, Bermuda, Feb. 22, 2018
(GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ:ESGR) announced
today that one of its wholly-owned subsidiaries has signed an
agreement with an Australian subsidiary of Zurich Insurance Group
to reinsure its New South Wales Motor Vehicle Compulsory Third
Party (CTP) insurance business.
Under the reinsurance, which is effective as of
January 1, 2018, Enstar's subsidiary will assume gross reinsurance
reserves of approximately AUD$350 million (approximately $275
million) relating to the CTP insurance business.
Following the initial reinsurance, which will
transfer the economics of the CTP insurance business to Enstar's
subsidiary, the parties will pursue a portfolio transfer of the CTP
insurance business under Division 3A of Part III of Australia's
Insurance Act 1973 (Cth), which would provide legal finality for
Zurich. The Division 3A transfer is subject to court, regulatory
and other approvals.
Commenting on the transaction, Dominic Silvester,
Enstar's Chief Executive Officer, said:
"This transaction with Zurich builds on Enstar's
successful management of other large Australian legacy portfolios.
It significantly enhances our footprint in Australia as we continue
to grow our non-life run-off operations in key insurance markets.
We appreciate the opportunity to partner with Zurich to offer a
reinsurance solution for its CTP portfolio."
About
Enstar
Enstar is a multi-faceted insurance group, with
over $14 billion in assets, 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 80 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, 2016 and in
Enstar's Form 10-Q for the nine months ended September 30, 2017,
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: Guy
Bowker
Telephone: +1 (441)
292-3645
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
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