Global insurance company Enstar Group Limited has announced that one of its wholly-owned subsidiaries has completed a transaction with ProSight Global to provide reinsurance relating to 2019 and prior-year business.
The reinsurance comprises a ground-up loss portfolio transfer of ProSight’s discontinued workers’ compensation and excess workers’ compensation lines of business and an adverse development cover on ProSight’s diversified mix of general liability classes of business, Enstar said.
In the transaction, Enstar’s subsidiary assumed net loss reserves of about $500 million, and will provide an additional aggregate limit of $250 million. The transaction closed following customary regulatory approvals and the satisfaction of various closing conditions, including the simultaneous closing of ProSight’s merger with affiliates of investment management firm TowerBrook and private equity firm Further Global.
“Enstar’s partnership with ProSight underlines the increasing versatility of legacy risk solutions as a source of value creation for insurers seeking to accelerate their growth in an attractive underwriting environment,” said Dominic Silvester, CEO of Enstar. “This reinsurance opportunity is aligned with our core business competencies, allowing us to provide ProSight with a solution for repositioning its capital as part of its broader strategic transaction with TowerBrook and Further Global.”