Enstar Announces Reinsurance Transaction With ProSight
January 15 2021 - 8:10AM
Enstar Group Limited (NASDAQ: ESGR) announced today that one
of its wholly owned subsidiaries has entered into an agreement with
subsidiaries of ProSight Global, Inc. (“ProSight”) to provide
reinsurance relating to 2019 and prior year business.
The reinsurance will comprise a ground up loss
portfolio transfer of ProSight’s discontinued workers’ compensation
and excess workers’ compensation lines of business and an adverse
development cover on ProSight’s diversified mix of general
liability classes of business. In the transaction, ProSight will
cede net loss reserves of approximately $500 million and Enstar’s
subsidiary will provide additional aggregate limit of $250 million.
The transaction is subject to the closing of a
broader strategic transaction announced by ProSight today and
remains subject to regulatory approval and 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.
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 obtain regulatory
approvals or to satisfy other closing conditions. In addition, the
evolving COVID-19 pandemic has caused significant economic and
financial turmoil globally, as well as uncertainty and volatility
in the financial markets. Due to the global uncertainty, we are
unable to predict the longer-term effects of the pandemic on our
business at this time. 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 in Enstar’s Form 10-Q for the
three and nine months ended September 30, 2020 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: Enstar
CommunicationsTelephone: +1 (441)
292-3645
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