An Enstar Group Ltd. subsidiary agreed to reinsure the New South Wales motor vehicle compulsory third party insurance business of Zurich Insurance Group AG's Australian subsidiary, effective Jan. 1.

Enstar's subsidiary will assume gross reinsurance reserves of about A$350 million, or about US$275 million, relating to the compulsory third-party portfolio.

Enstar's subsidiary will take on the economics of the portfolio in the initial reinsurance, after which a portfolio transfer will occur.