Enstar To Reinsure $1.1B Of Allianz Re
Enstar Group Limited 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.
