Enstar unit closes adverse cover pact
A wholly owned subsidiary of the Bermuda-based insurer Enstar Group Limited has closed a previously announced agreement with Royal & Sun Alliance Insurance Limited, a wholly owned subsidiary of Toronto-based Intact Financial Corporation.
The company said that the agreement provides adverse development cover (ADC) for certain UK, Irish and other business of RSA and its subsidiaries.
Enstar said that the ADC provides £400 million of aggregate coverage in excess of a £2.595 billion retention on losses occurring on or before December 31, 2020, within a diversified portfolio of commercial and personal insurance lines risks.
Enstar and RSA co-participate on the cover, with Enstar providing 50 per cent and RSA retaining the remaining 50 per cent.
Completion of the transaction followed regulatory approval and fulfilment of various closing conditions.
Dominic Silvester, Enstar’s chief executive officer, said: “This transaction, our second large deal with RSA, shows the role that well-designed, smoothly executed legacy solutions can play in facilitating M&A activity in the global insurance market.”
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