US

Travelers sells London run-off unit

The Travelers Companies Inc’s St Paul Fire and Marine Insurance is to sell Unionamerica Holdings Ltd to a UK subsidiary of Bermudian headquartered Enstar Group. Through its UK subsidiary Royston Run-Off Ltd, Enstar Group will acquire the run-off business of Travelers’ London company market books, which include US casualty, asbestos and environmental reserves and UK and European motor reserves. The businesses were placed into run-off over a period stretching from 1992 to 2003 and carry gross liabilities of US$1bn as of June 30, 2008. The acquisition is to be funded by a US$343.4mn loan from National Australia Bank and additional funding from JC Flowers.