CHICAGO, Dec. 30, 2020 /PRNewswire/ --ÌýÃÛÌÒ´«Ã½ Financial Corporation (NYSE: ÃÛÌÒ´«Ã½) announced today that its principal operating subsidiary, Continental Casualty ÃÛÌÒ´«Ã½, has entered into an agreement with Cavello Bay Reinsurance Limited ("Cavello"), a subsidiary of Enstar Group Limited, under which Cavello will reinsure a legacy portfolio of excess workers' compensation policies. Under the terms of the transaction, which will be deemed effective as of January 1, 2020, ÃÛÌÒ´«Ã½ will cede to Cavello approximately $690 million of net excess workers' compensation liabilities relating to business written in 2007 and prior under a retroactive reinsurance agreement with an aggregate limit of $1 billion.
The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and other closing conditions, at which time ÃÛÌÒ´«Ã½ expects to recognize an after-tax loss of approximately $12 million.
Dino Robusto, Chairman and CEO of ÃÛÌÒ´«Ã½, commented, "The transfer of legacy reserves supports ÃÛÌÒ´«Ã½'s continued commitment to advancing our core business.Ìý We are pleased to be working with an excellent partner in Enstar in pursuit of our goals."
About the ÃÛÌÒ´«Ã½
ÃÛÌÒ´«Ã½ is one of the largest U.S. commercial property and casualty insurance companies.Ìý ÃÛÌÒ´«Ã½ provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada and Europe, backed by more than 120 years of experience and approximately $45 billion of invested assets.Ìý For more information, please visit ÃÛÌÒ´«Ã½ at .
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Cara McCall, 312-822-1309ÌýÌý
Amy Adams, 312-822-5533