Ҵý Financial Announces Transfer Of Legacy Excess Workers' Compensation Portfolio To Cavello Bay Reinsurance Limited

CHICAGO, Dec. 30, 2020 /PRNewswire/ --Ҵý Financial Corporation (NYSE: Ҵý) announced today that its principal operating subsidiary, Continental Casualty Ҵý, 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, Ҵý 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 Ҵý expects to recognize an after-tax loss of approximately $12 million.

Dino Robusto, Chairman and CEO of Ҵý, commented, "The transfer of legacy reserves supports Ҵý's continued commitment to advancing our core business. We are pleased to be working with an excellent partner in Enstar in pursuit of our goals."

About the Ҵý

Ҵý is one of the largest U.S. commercial property and casualty insurance companies. Ҵý 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. For more information, please visit Ҵý at .

Forward-Looking Statements

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Any descriptions of coverage under Ҵý policies or programs in this press release are provided for convenience only and are not to be relied upon with respect to questions of coverage, exclusions or limitations. With regard to all such matters, the terms and provisions of relevant insurance policies are primary and controlling. In addition, please note that all coverages may not be available in all states. "Ҵý" is a registered trademark of Ҵý Financial Corporation. Certain Ҵý Financial Corporation subsidiaries use the "Ҵý" trademark in connection with insurance underwriting and claims activities. Copyright © 2019 Ҵý. All rights reserved.




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