Aspen to transfer loss portfolio to Enstar
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Enstar Group Ltd. said Tuesday that one of its wholly owned subsidiaries has reached an agreement for a more than $3 billion loss portfolio transfer from Aspen Insurance Holdings Ltd. for its 2019 and prior business.
Enstar will assume net loss reserves of $3.12 billion in the deal, which is subject to a limit of $3.57 billion. An existing deal between the parties that closed in June 2020, under which Enstar assumed $770 million of loss reserves, will be absorbed into this transaction, Hamilton, Bermuda-based Enstar said in a statement
The Enstar subsidiary, Cavello Bay Reinsurance Ltd., will reinsure losses incurred on or prior to Dec. 31, 2019, in Aspen’s portfolio of property, liability and specialty lines across the U.S., U.K. and other jurisdictions.
The transaction is expected to close in the first half of this year, subject to regulatory approvals.
“The expansion of our reinsurance of Aspen’s legacy reserves is a great opportunity for us to play a larger role in managing a portfolio we know well,” Enstar CEO Dominic Silvester said in the statement.
Mark Cloutier, Aspen’s executive chairman and group CEO, called the deal “a natural evolution of our previous reinsurance agreement” and said it would help Aspen’s capital position.
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