Bermudian-based Enstar Group Ltd has announced that its wholly owned subsidiary, Cavello Bay Reinsurance Ltd, has acquired a Bermuda-domiciled Class 3B insurer and segregated accounts company.

Enstar said the acquired company underwrote property reinsurance business between 2020 and 2023 on behalf of third-party investors, assuming the risk through retrocession agreements with a fronting carrier. The reinsurer had $66 million of shareholders’ equity at the end of July 2024.

Enstar said the reinsurer will be merged into Cavello Bay and a consolidated and amended retrocession agreement between the fronting carrier and Cavello Bay will become effective.

Dominic Silvester, chief executive of Enstar, said: “This acquisition is our second transaction in the property ILS space in recent months, which we see as a growth market for legacy solutions.

“The deal structure eliminates collateral requirements, demonstrating the benefit of Cavello Bay’s strong balance sheet and financial strength rating.”