Enstar Group Limited has announced an update on its joint venture with Allianz SE. [Allianz]Enhanced Reinsurance Ltd. [Enhanzed Re]and its recent investment portfolio performance.
A spokesperson said, “On August 18, 2022, Cavello Bay Reinsurance Limited will [Cavello Bay]Enstar’s wholly-owned subsidiary has entered into master agreements with Allianz and Enhanzed Re. Pursuant to the master contract, Cavello Bay and Allianz have agreed to a series of transactions, including:
- Replace or renew all reinsurance contracts written by Enhands Dolly, with the exception of one reinsurance transaction relating to a block of annuity contracts written by an affiliate of Allianz [the Annuities Portfolio]the parties cooperate in good faith to nobate to third parties on commercially reasonable terms.
- Repay $70 million of subordinated notes issued by Enhanzed Re to affiliates of Allianz.When
- Enhanzed Re’s surplus capital will be distributed between Cavello Bay and Allianz according to their respective shareholdings.
“The closing of the transaction contemplated by the Master Agreement is subject to customary closing conditions, including receipt of certain regulatory approvals. , is expected to increase the book value of Enstar by approximately $62 million in the annuity portfolio.
investment update
“During the six months ended June 30, 2022, Enstar reported total recognized and unrecognized investment losses of $1.3 billion caused by continued volatility in the global financial markets. In July 2022, our investment portfolio recognized an estimated unrealized gain of $221 million or $12.72 per share due to improving equity and credit markets and lower interest rates. Excludes the results of Enhanced and certain other investments that are reported quarterly as disclosed in Enstar’s Quarterly Report on Form 10-Q for the period ended June 30, 2022. increase.
“In addition to the strong investment results at the end of July, market conditions continued to improve in August, which is having a positive impact on our risk assets. Continues to improve All yields remain at year-to-date highs and new premiums can be invested at attractive levels Regardless of near-term volatility, our investment portfolio is poised for long-term We are confident that we are well positioned to deliver value.”
read more about
Category: all, business
