Enstar Agrees Cover Transaction With IAG
Enstar Group Limited announced that one of its wholly owned subsidiaries has signed an adverse development cover agreement with Insurance Australia Limited, on behalf of Insurance Australia Group [IAG].
A spokesperson said, “Under the terms of the agreement Enstar will provide approximately the equivalent of US$430 million [AU$650m] of excess cover over the equivalent of US$1.7 billion [AU$ 2.5bn] of underlying reserves related to certain long-tail insurance business. This transaction includes Product & Public Liability, Compulsory Third-Party Motor, Professional Risks and Workers’ Compensation for losses incurred on or prior to June 30, 2023. Completion of the transaction is subject to regulatory approval and satisfaction of various closing conditions.”
Dominic Silvester, Enstar’s Chief Executive Officer, commented: “We are pleased to provide a bespoke reinsurance solution that will support IAG in reducing financial risk, capital requirements and earnings volatility. This transaction demonstrates our strong capabilities in the Australian market as we continue to strengthen our position as the partner of choice across global markets.”
