Enstar Group Limited has signed a reinsurance agreement with an Australian subsidiary of Zurich Insurance Group to cover its New South Wales Motor Vehicle Compulsory Third Party (CTP) insurance business.
A wholly-owned subsidiary of Enstar will assume gross reinsurance reserves of approximately AUD$350 million relating to the CTP insurance business. The reinsurance became effective January 01, this year.
After the initial reinsurance, which will transfer the economics of the CTP insurance business to Enstar’s subsidiary, both parties will carry out a portfolio transfer of the CTP insurance business under Division 3A of Part III of Australia’s Insurance Act 1973 (Cth), which would provide legal finality for Zurich. The transfer is subject to court, regulatory and other approvals.
“This transaction with Zurich builds on Enstar’s successful management of other large Australian legacy portfolios,” commented Enstar CEO Dominic Silvester. “It significantly enhances our footprint in Australia as we continue to grow our non-life run-off operations in key insurance markets. We appreciate the opportunity to partner with Zurich to offer a reinsurance solution for its CTP portfolio.”
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