Bermuda-based insurance company Enstar Group has completed the transaction of selling its subsidiary Pavonia Life business to Global Bankers Insurance Group.

Enstar acquired Pavonia from HSBC Finance in 2013 and it represented the company’s North American life and annuities business.

Before it was placed into run-off in 2011, Pavonia offered credit life and disability insurance, term life insurance and structured settlement annuities on primary basis and through reinsurance from third parties.

Presently, Pavonia has licenses in 49 states and also operates in Canada.

Global Bankers vice chairman and co-CEO George Luecke said: “We are thrilled to officially welcome Pavonia and its team into the Global Bankers’ family of insurers.

“Underscoring our substantial long-term commitment to the life and annuity industry, this is our eighth carrier acquisition to date."

Global Bankers co-CEO and president Lou Hensley said: “We recognize Enstar’s high service levels to Pavonia’s policyholders and our commitment to building upon this strong foundation is a key feature of our planned investment in Pavonia going forward.”

Recently, one of Enstar’s subsidiaries has agreed to reinsure a portfolio of Allianz’s run-off business effective from December 31, last year for an amount of $100m.

The coverage includes 50% of its US workers’ compensation and asbestos and toxic tort business which was originally assumed by San Francisco Reinsurance Company. Enstar will also provide consulting services with respect to the entire $200m portfolio. 

Enstar's CEO Dominic Silvester said: “In 2016, we partnered with Allianz SE to provide reinsurance solutions for legacy portfolios. We are pleased to continue building our relationship with Allianz SE by entering into another transaction that aligns with our core competencies and growth strategy.”

Image: Enstar completes the sale of Pavonia business. Photo: Courtesy of RK008/