Bermudian-based insurer Enstar Group Limited has announced that its wholly-owned subsidiaries have reached an agreement for a ground-up loss portfolio transfer with certain subsidiaries of QBE Insurance Group Limited on a diversified portfolio of business, covering International and North America financial lines, European and North American reinsurance portfolios, and several US discontinued programmes.

In the LPT transaction, which is effective as of January 1, Enstar’s subsidiaries will assume net loss reserves from QBE of $1.9 billion and will provide approximately $900 million of cover in excess of the ceded reserves on business largely underwritten between 2010 and 2018.

The transaction will complete upon receipt of regulatory approvals and satisfaction of various other closing conditions. Upon completion, a portion of the portfolio currently underwritten via QBE’s Lloyd’s syndicates 386 and 2999 will be transferred into Enstar syndicate 2008.

Dominic Silvester, Enstar’s chief executive officer, said: “This transaction, our second significant collaboration with leading insurance group, QBE, represents a unique and emerging business opportunity for Enstar.

“In addition to covering QBE’s discontinued lines, we are providing our expertise on seasoned liabilities within ongoing lines of business as a source of value creation.

“This innovative structure requires strong alignment of interests, and we have secured that with our longstanding partner QBE.”