Enstar Group Ltd. announced that one of its wholly owned subsidiaries has signed an agreement to provide adverse development cover to AXA XL, a division of AXA.
In the transaction, Enstar’s subsidiary will cover losses incurred on or prior to Dec. 31, 2019 on a diversified mix of global casualty and professional lines for a premium equal to the transfer of loss reserves of 90% of $1.550 billion.
Enstar’s subsidiary will provide 90% protection (with AXA XL retaining 10%) on two layers, the first providing $1.550 billion of cover in excess of a $9.438 billion retention and the second providing an additional $1.0 billion of cover in excess above $11.363 billion. (Editor’s note: The total coverage from Enstar is $2.295 billion—90% of the $1.55 billion layer and 90% of the $1 billion layer).
Completion of the transaction is subject to regulatory approvals and satisfaction of various closing conditions. The transaction is expected to close around the end of the first quarter 2021.
Enstar, the Bermuda-based legacy-acquisition specialist, offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar has acquired over 100 companies and portfolios since its formation in 2001.
Topics AXA XL
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