3rd Jun 2021 10:48
(Alliance News) - Hiscox Ltd on Thursday said it has signed a loss portfolio transfer agreement with Nasdaq-listed insurance firm Enstar Group Ltd, where Enstar will take on historical liabilities for selected lines of Hiscox Syndicate 3624.
The agreement includes the majority of Hiscox USA's surplus line broker business.
The Hamilton, Bermuda-based insurer said under the terms of the agreement, it will secure coverage for potential adverse developments on reserves valued at USD520 million as at the end of 2020, relating to 2019 and prior-year business.
The deal is expected to be capital accretive to Hiscox, and add around ten points to its Bermuda solvency capital ratio. However, the transaction will also result in a charge of USD26 million for the first half of 2021.
Shares in Hiscox were up 4.0% at 823.80 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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