ENSTAR ANNOUNCES REINSURANCE OF $465 MILLION OF LYFT’S LEGACY RESERVES
March 31 2020 - 5:00PM
Enstar Group Limited (NASDAQ: ESGR) announced today that one of its
wholly owned U.S. subsidiaries has entered into a novation
agreement with affiliates of Lyft, Inc. (“Lyft”) and certain
underwriting companies of Zurich North America (“Zurich”). Enstar
will reinsure legacy automobile business underwritten by Zurich
between October 1, 2015 and September 30, 2018 and reinsured by
Lyft’s wholly owned subsidiary, Pacific Valley Insurance Company
("PVIC") for consideration of $465 million. Under a separate
agreement, PVIC will provide retrocession coverage to Enstar in
excess of a $816 million limit.
The transaction, which has a March 31, 2020
effective date, is expected to be completed in early April, subject
to various closing conditions.
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
approximately 100 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. In
particular, Enstar may not be able to complete the
proposed transaction on the terms summarized above or other
acceptable terms, or at all, due to a number of factors, including
but not limited to the failure to satisfy closing conditions, for
example, due to uncertainty in the financial markets in the wake of
the COVID-19 pandemic. 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, 2019 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
BowkerTelephone: +1 (441) 292-3645
Enstar (NASDAQ:ESGR)
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