Enstar Group Ltd.said March 31 that one of its wholly owned subsidiaries has completed a to reinsure portfoliosof Allianz Re's U.S. run-off business.

In the transaction, Enstar assumes net reinsurance reserves ofapproximately $1.1 billion, by reinsuring 50% of certain workers' compensation,construction defect, and asbestos, pollution and toxic tort business originallyheld by Fireman's Fund Insurance Co.The closing followed receipt of regulatory approval and satisfaction of closingconditions.

Consideration for the transaction includes Enstar transferringapproximately $110 million to a reinsurance collateral trust, which was funded fromavailable cash on hand, and the provision of a limited parental guarantee. The combinedmonetary total of the support offered by Enstar will initially be capped at $270million.

As part of the transaction, Enstar is providing consulting serviceswith respect to the entire $2.2 billion portfolio, including Allianz Re's retained50% share.