Enstar Group Ltd, the Bermudian-based insurer, has completed the previously announced transaction between Cavello Bay Reinsurance Ltd, its wholly owned subsidiary, and certain subsidiaries of island-headquartered James River Group Holdings Ltd.

The announcement follows receipt of the relevant regulatory approval and satisfaction of the other closing conditions. The deal was announced last month.

Under the terms of the adverse development cover agreement, Enstar’s subsidiary has provided $75 million of limit in excess of the existing $160 million ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance Company Inc earlier this year.

The transaction provides further protection against future adverse reserve development for certain US casualty exposures within James River’s Excess & Surplus Lines segment for accident years 2010 to 2023.

Enstar’s subsidiary also closed on its previously announced $12.5 million investment in James River common stock.