A subsidiary of legacy specialist Enstar has closed a previously announced agreement with Royal & Sun Alliance Insurance (RSA) to provide adverse development cover (ADC) for certain UK, Irish, and other business of RSA and its subsidiaries.
This deal was first announced this year in July and was expected to close sometime in the third quarter.
Enstar says the ADC provides £400 million of aggregate coverage in excess of a £2.595 billion retention on losses occurring on or prior to December 31, 2020 within a diversified portfolio of commercial and personal insurance lines risks.
Both Enstar and RSA co-participate on the cover, with Enstar providing 50% and RSA retaining the remaining 50%.
“This transaction, our second large deal with RSA, shows the role that well-designed, smoothly executed legacy solutions can play in facilitating M&A activity in the global insurance market,” said Dominic Silvester, Enstar’s Chief Executive Officer.
Completion of the transaction followed receipt of regulatory approval and satisfaction of various closing conditions.