LONDON (dpa-AFX) - International specialist insurer Hiscox Ltd (HSX.L) said it has completed a loss portfolio transfer or LPT agreement with Enstar Group Ltd., whereby Enstar's Syndicate 2008 would
Bermuda-based specialist insurer Hiscox Ltd. has completed a loss portfolio transfer (LPT) agreement with Enstar Group Ltd., whereby Enstar's Syndicate
Hiscox strengthens its capital position with Enstar LPT
03-06-2021
08-04-2020
Hiscox has completed a loss portfolio transfer with Enstar Group that RBC Capital Markets said will buy it time to focus on more profitable business and remove uncertainty from future reserve volatility.
Enstar Syndicate 2008 reinsured a diversified portfolio of legacy insurance business underwritten by Hiscox Syndicate 3624, including the majority of Hiscox USA’s surplus lines broker business.
Hiscox has ceded net insurance reserves of approximately $520 million at December 31, 2020, relating to 2019 and prior-year business.
RBC said the deal will benefit Hiscox’s capital position, adding around 10 basis points to its group Bermuda solvency capital ratio, which stood at 190 percent at the end of 2020. It will result in a profit and loss charge of $26 million in 2021, RBC said.