Enstar Reinsurance Agreements With Sun Life
Enstar Group Limited announced that on September 30, 2015, it, through wholly owned subsidiaries, entered into two 100% reinsurance agreements with Sun Life Assurance Company of Canada and its U.S. Branch, respectively, and a related administration agreement.
In the transaction, an Enstar subsidiary has reinsured all of the run-off workers compensation carve-out and occupational accident business of Sun Life.
Enstar has assumed total net discounted reinsurance reserves and payable balances of approximately $139.4 million in the transaction. Enstar has provided limited parental guarantees supporting certain obligations of its subsidiaries.
The amount of the guarantees will increase or decrease over time under certain circumstances, but will always be subject to an overall maximum cap of approximately $36.8 million with respect to the reinsurance liabilities.
Dominic Silvester, Enstar’s Chief Executive Officer, said, “We have continued to add U.S. legacy reserves, including to our large portfolio of workers compensation business. We know this particular block of business extremely well, having managed it on behalf of Sun Life since 1999, and are pleased to have partnered with them to complete this transaction.”
