Global insurer and reinsurer, AXIS Capital Holdings Limited and global legacy re/insurance specialist, Enstar Group Limited have completed their previously announced 75% ground-up quota share loss portfolio transfer (LPT) reinsurance agreement.
The transaction was completed following the receipt of regulatory approvals and satisfaction of various other closing conditions.
The LPT agreement covers a portfolio of reinsurance segment reserves predominantly attributable to casualty portfolios related to 2021 and prior underwriting years.
The agreement covers reinsurance segment reserves of $3.1 billion at September 30th, 2024, and is a 75% quota share, with AXIS retroceding $2.3 billion of reinsurance segment reserves to Enstar.
The LPT agreement was provided by Enstar’s wholly owned subsidiary, Cavello Bay Reinsurance Limited.
It was previously reported that Bermuda-domiciled AXIS expects to recognise an approximate $60 million benefit from the excess of reserves ceded over the next several years, according to the payment patterns of these reserves.
Additionally, as earlier reported, AXIS will also maintain claims control for the covered reserves subject to certain administrative rights of Enstar.
