A wholly-owned US subsidiary of Enstar Group has entered into a novation agreement with affiliates of ridesharing company Lyft and underwriting companies of Zurich North America.
As part of the agreement, Enstar will reinsure legacy automobile business underwritten by Zurich between 1 October 2015 and 30 September 2018 and reinsured by Lyft’s wholly-owned subsidiary, Pacific Valley Insurance Company (PVIC) for consideration of $465 million.
According to Enstar, under a separate agreement, PVIC will provide retrocession coverage to Enstar in excess of a $816 million limit.
The transaction, effective as of 31 March 2020, is expected to be completed in early April, subject to various closing conditions.
In March last year, Lyft established its own captive insurance company, located in Hawaii.
Enstar is an insurance group that offers capital release solutions and specialty underwriting capabilities through its network of group companies in Bermuda, the US, the UK, Continental Europe, Australia, and other international locations.