Enstar Group Limited Announces Completion of Loss Portfolio Transfer Reinsurance Transaction with Reciprocal of America
January 15 2015 - 4:00PM
HAMILTON, Bermuda, Jan. 15, 2015 (GLOBE NEWSWIRE)
-- Enstar Group Limited ("Enstar") (Nasdaq:ESGR) announced today
that its wholly owned subsidiary, Providence Washington Insurance
Company, has completed a loss portfolio transfer reinsurance
transaction with Reciprocal of America (in Receivership)
("Reciprocal") and its Deputy Receiver relating to a portfolio of
workers' compensation business that has been in run-off since
2003.
The loss portfolio transfer reinsurance
transaction was completed after receipt of the approval of the
Commonwealth of Virginia State Corporation Commission and the State
of Rhode Island Department of Business Regulation.
Dominic Silvester, Enstar's Chief Executive
Officer, said, "I am pleased that the Reciprocal transaction has
completed. The liabilities assumed are within our core
competency of workers compensation run-off. The transaction
itself was innovative in that it was undertaken with a company in
receivership and whose previous insolvency had triggered
obligations of a number of Guaranty Associations. As a result of
the transaction, Reciprocal should be able to proceed to a more
timely resolution of its estate than would have otherwise been the
case. We enjoyed working closely with the Deputy Receiver and
her Counsel at Cantilo & Bennett, L.L.P. to achieve this
excellent outcome for Reciprocal and its policyholders."
Providence Washington Insurance Company has taken
on liabilities of approximately $163.8 million (subject to certain
post-closing adjustments).
Enstar Group Limited and its operating
subsidiaries acquire and manage diversified insurance businesses
through a network of service companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. Enstar is a market leader in
completing legacy acquisitions, having acquired over 60 companies
and portfolios since its formation in 2001. Enstar's active
underwriting businesses include the Atrium group of companies,
which manage and underwrite specialist insurance and reinsurance
business for Lloyd's Syndicate 609, and the Torus group of
companies, an A- rated global specialty insurance group with
multiple global underwriting platforms. For further information
about Enstar, see www.enstargroup.com.
This press release contains
certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
include statements regarding the intent, belief or current
expectations of Enstar and its management team. Investors are
cautioned that any such forward-looking statements speak only as of
the date they are made, are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those projected in the forward-looking
statements as a result of various factors. Important risk
factors regarding Enstar may be found under the heading "Risk
Factors" in Enstar's Form 10-K for the year ended December 31, 2013
and Form 10-Q for the three and six months ended June 30, 2014, and
are incorporated herein by reference. Furthermore, Enstar
undertakes no obligation to update any written or oral
forward-looking statements or publicly announce any updates or
revisions to any of the forward-looking statements contained
herein, to reflect any change in its expectations with regard
thereto or any change in events, conditions, circumstances or
assumptions underlying such statements, except as required by
law.
CONTACT: Richard J. Harris
Telephone: (441) 292-3645
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Enstar Group Limited via Globenewswire
HUG#1887525
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