Enstar: Reinsurance Of $1.1 Billion Of Allianz
Bermuda-based Enstar Group Limited announced today that one of its wholly owned subsidiaries has entered into an agreement to reinsure portfolios of Allianz Re’s U.S. run-off business.
Enstar’s subsidiary will assume 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. Enstar will also provide consulting services with respect to the entire $2.2 billion portfolio, including Allianz Re’s retained 50% share.
Under the reinsurance transaction [which is subject to final regulatory approval], Enstar will transfer approximately $110 million to a reinsurance collateral trust and will also offer a limited parental guarantee. The combined monetary total of the support offered by Enstar will initially be capped at $270 million.
Commenting on the transaction, Dominic Silvester, Enstar’s Chief Executive Officer, said, “Implementing a reinsurance transaction of this complexity and magnitude for Allianz, a global industry leader, demonstrates clearly the scope and scale of the solutions that Enstar can provide.
“We welcome the opportunity to continue to work with Allianz, and we appreciate the trust and confidence Allianz has placed in Enstar to structure, manage and advise on this sizeable transaction.”
