Enstar Group, through its wholly-owned subsidiary, has signed two 100% coinsurance agreements and related administration agreements with Voya Financial subsidiary ReliaStar Life Insurance.
Under the deal, Enstar subsidiary has reinsured all of the run-off workers compensation carve-out and occupational accident business of ReliaStar, including from its Canadian branch.
Enstar CEO Dominic Silvester said: This transaction adds sizeable reserves to our growing legacy property and casualty business in the US.
"We are very familiar with this business, having worked with the team at Voya for many years, and we were pleased to be able to provide them with an effective reinsurance solution."
Enstar has took over total gross discounted reinsurance reserves of around $290m, while ReliaStar has transferred assets into two reinsurance collateral trusts securing the obligations of Enstar’s subsidiary under the coinsurance agreements.
The subsidiary of Enstar has transferred around $67m of additional funds to the trusts to further support the obligations, and Enstar has offered a limited parental guarantee supporting certain obligations of its subsidiary.
Enstar, along with its operating subsidiaries, acquire and manage diversified insurance businesses through a network of service companies in Bermuda, the US, the UK, Continental Europe, Australia and other international locations.
Image: Enstar subsidiary has signed two coinsurance agreements with ReliaStar Life Insurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.