Significant transactions

12 Months Ended

Dec. 31, 2021

Significant Transactions [Abstract]

Significant transactions

4. Significant transactions

Loss Portfolio Transfer

On October 29, 2021, the Company entered into a loss portfolio transfer transaction (the “LPT”) with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The LPT covers $362 million of the Company’s loss reserves for the subject business, including much of the legacy Sirius Group runoff portfolio, including asbestos and environmental lines, up to an aggregate limit of $592 million over the duration of the contract, for a premium of $381 million which was settled in the form of investments. The Company recognized a net Corporate charge of $23 million, including $4 million of federal excise tax expense, in the fourth quarter of 2021.

Cedar Insurance Company

On August 5, 2021, the Company sold 100% of the common shares of Cedar Insurance Company (“Cedar”) to Grandview Risk Holdings Ltd. Cedar is a New York-domiciled insurer with a runoff book of business mainly comprised of the following lines of business: general liability, educators’ legal liability, automobile liability and physical damage, property and excess catastrophe liability. The Company received $20.5 million of proceeds and recognized a $5.8 million gain from the sale, which is included in net corporate and other expenses in the consolidated statements of income. As part of the sale of Cedar, the Company disposed of $1.0 million of insurance licenses related to the indefinite-lived intangible assets recognized as part of the Sirius Group acquisition.