LONDON (dpa-AFX) - International specialist insurer Hiscox Ltd (HSX.L) said it has completed a loss portfolio transfer or LPT agreement with Enstar Group Ltd., whereby Enstar's Syndicate 2008 would assume historical liabilities for selected lines of Hiscox Syndicate 3624, including the majority of Hiscox USA's surplus lines broker business.
As per the terms of the deal, Hiscox secures coverage for potential adverse development in respect of reserves valued at about $520 million at 31st December 2020 relating to 2019 and prior-year business.
The transaction is capital accretive to Hiscox adding an estimated 10 points to the Group's Bermuda Solvency Capital Ratio and would result in a P&L charge of $26 million in H1 2021.
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