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.