QBE will cede its U.S. multi-line property and casualty business.
On December 6, it was announced that a subsidiary of Willkie client QBE Insurance Group Limited entered into a conditional agreement with a wholly owned subsidiary of Enstar Group Limited to cede its U.S. multi-line property and casualty business.
Enstar’s subsidiary will assume gross reinsurance reserves of approximately $919 million (net reserves of $444 million) relating to the portfolio, which primarily includes workers’ compensation, construction defect, and general liability discontinued lines of business. Under the reinsurance transaction, which is subject to regulatory approval, Enstar’s subsidiary will pledge a portion of the premium as collateral to a subsidiary of QBE. Enstar will also provide additional collateral and a limited parental guarantee.
QBE Insurance Group is one of the world's top 20 general insurance and reinsurance companies, with operations in all the key insurance markets. QBE is listed on the Australian Securities Exchange and is headquartered in Sydney.
Enstar is a multifaceted insurance group that offers innovative capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations.
The Willkie deal team was led by partner Michael Groll and included partners Matthew Stern and Eugene Chang, senior counsel Donald Henderson, counsel Cindy Chernuchin and associate Bhavna Agnihotri.