A wholly-owned subsidiary of Enstar Group Ltd, the Bermudian-based insurer, has reached an agreement to provide a ground-up loss portfolio transfer with certain subsidiaries of QBE Insurance Group Ltd.

The company said the transaction involves a diversified portfolio of US commercial liability and workers’ compensation business, largely underwritten on recently discontinued programmes.

Enstar said it is familiar with the majority of the business and has existing exposure to the programmes through a previous transaction with QBE in 2023.

Under the terms of the agreement, Enstar’s subsidiary will assume net loss reserves from QBE of $376 million, as of the effective date of July 1, 2024, and will provide approximately $175 million of cover in excess of the ceded reserves.

The transaction is expected to complete in the fourth quarter of 2024 upon receipt of regulatory approvals and satisfaction of other customary closing conditions.

Dominic Silvester, Enstar’s chief executive officer, said: “We are extremely pleased to build upon a valuable relationship with our long-standing partner, QBE.

"This transaction demonstrates our commitment to developing deep partnerships with global, leading insurers, and enables us to apply our best-in-class claims handling capabilities in the US to a portfolio where we hold significant expertise and experience.”