Enstar delivers legacy risk solutions
A unit of Bermuda-based Enstar Group Limited has completed a transaction with ProSight Global Inc to provide reinsurance relating to 2019 and prior year business.
Enstar said 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.
In the transaction, Enstar’s subsidiary assumed net loss reserves of approximately $500 million and Enstar’s subsidiary will provide an additional aggregate limit of $250 million.
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions, including the simultaneous closing of ProSight’s merger with affiliates of investment management firm TowerBrook and private equity firm Further Global, the company said.
Dominic Silvester, chief executive officer of Enstar, said: “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.
“This reinsurance opportunity is aligned with our core 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.”