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UPDATE 1-Australian insurer QBE taps RiverStone, Enstar to de-risk $1.6 bln reserves exposure
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UPDATE 1-Australian insurer QBE taps RiverStone, Enstar to de-risk $1.6 bln reserves exposure

Updates with further details and background throughout

- Australia's QBE Insurance QBE.AX said on Friday it had entered transactions with Britain-based RiverStone International and global insurance group Enstar ESGR.O in a bid to de-risk the firm's exposure to reserves totalling about $1.6 billion.

The reinsurance deals with the parties will de-risk all of QBE's North America middle-market reserves and a small of other portfolios in its international and North America businesses.

The reserves transaction will also lead to a $230 million capital benefit for QBE in the second half of the year.

"Alongside prior reserve transactions, QBE has protected ~20% of long tail reserves, which have collectively contributed over $1 billion in adverse prior development through recent periods," the firm said in a statement.

The deal will serve to further de-risk long-tail reserves for older accident years, QBE said, adding that it would drive greater capital efficiency for the firm.


(Reporting by Rishav Chatterjee in Bengaluru; Editing by Leslie Adler and Jamie Freed)

((Rishav.Chatterjee@thomsonreuters.com;))

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