Enstar signs adverse development cover
A wholly owned subsidiary of Enstar Group Limited has signed an adverse development cover agreement with Insurance Australia Limited, on behalf of Insurance Australia Group.
Under the terms of the agreement, Nasdaq-listed Enstar will provide the equivalent of about US$430 million (AU$650m) of excess cover over the equivalent of US$1.7 billion (AU$ 2.5bn) of underlying reserves related to certain longtail insurance business.
The transaction includes Product & Public Liability, Compulsory Third-Party Motor, Professional Risks and Workers’ Compensation for losses incurred on or prior to June 30, 2023.
Dominic Silvester, Enstar’s chief executive officer, commented: “We are pleased to provide a bespoke reinsurance solution that will support IAG in reducing financial risk, capital requirements and earnings volatility.
“This transaction demonstrates our strong capabilities in the Australian market as we continue to strengthen our position as the partner of choice across global markets.”
Completion of the transaction is subject to regulatory approval and satisfaction of various closing conditions.
Enstar is a global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, continental Europe, Australia, and other international locations.
A market leader in completing legacy acquisitions, Enstar has acquired more than 117 companies and portfolios since its formation in 2001.
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