Enstar Completes Loss Portfolio Transfer
Enstar Group Limited announced that one of its wholly-owned subsidiaries has closed a previously announced Loss Portfolio Transfer agreement with RACQ Insurance Limited [RACQ] to reinsure 80% of RACQ’s motor vehicle compulsory third party insurance liabilities, covering accident years 2021 and prior.
A spokesperson said, “Under the reinsurance agreement, which is effective as of July 1, 2022, RACQ will cede net reserves of approximately AUD$ 360 million [USD$ 235 million], and Enstar’s subsidiary will provide approximately AUD$ 200 million [USD$ 130 million] of cover in excess of the ceded reserves.
“The amount of net loss reserves ceded, as well as the settlement and limit amounts provided in the agreement, will be adjusted for claims paid between the effective date and the closing date of the transaction, pursuant to the terms of the contract.
“Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.”
