(Reuters) – Australia’s QBE Insurance said on Friday it had struck a transaction with Britain-based Riverstone International and global insurance group Enstar to reduce exposure to about $1.6 billion of the company’s reserves.
Reinsurance deals with these parties will reduce risk across all of QBE’s North American middle-market reserves and certain other portfolios across its international and North American businesses.
This reserve transaction will also result in a net capital gain of $230 million to QBE in the second half of the year.
“Together with the prior reserve transactions, QBE has now secured approximately 20% of its long-term reserves, which collectively contributed over $1 billion in adverse prior development during the recent period,” the firm said in a statement.
QBE said the deal will further reduce long-capital reserve exposure for older accident years, and will also enhance the company’s capital efficiency.
