Enstar inks portfolio transfer deal with SiriusPoint

Reinsurance agreement will cover almost half a billion in workers' comp business

Enstar inks portfolio transfer deal with SiriusPoint


By Kenneth Araullo

Enstar Group has announced that it has finalized a loss portfolio transfer agreement through one of its wholly-owned subsidiaries with a subsidiary of SiriusPoint.

The agreement involves reinsuring a $400 million workers' compensation portfolio covering underwriting years from 2018 to 2023.

Per the terms of the reinsurance agreement set to take effect at closing, SiriusPoint will cede net reserves totaling approximately $400 million. In response, Enstar’s subsidiary will provide an excess cover of about $200 million over the ceded reserves. Additionally, claims management responsibilities will transition to Enstar.

The closure of this transaction is pending regulatory approvals and the fulfillment of other customary conditions. Guy Carpenter served as the broker for this deal.

Dominic Silvester, CEO of Enstar, commented on the transaction and how it will help SiriusPoint in its ventures.

“Our partnership with SiriusPoint aligns with our expertise and track record of outperformance in US Workers’ Compensation and demonstrates our capabilities to structure and execute sophisticated risk solutions. For SiriusPoint, this bespoke transaction will help to support its long-term strategic, economic and operational goals,” Silvester said.

Enstar is a NASDAQ-listed global insurance group that specializes in offering innovative capital release solutions across a network spanning Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international markets. The firm has successfully acquired 117 companies and portfolios since its inception in 2001.

Last month, the firm also announced the completion of a loss portfolio transfer between wholly-owned Enstar subsidiaries and certain subsidiaries of QBE.

The deal features what was described as a “diversified” book of business that spans international and North America financial lines, European and North American reinsurance portfolios, and several discontinued programs in the US.

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