Enstar Group Limited has announced that one of its wholly-owned subsidiaries has closed the previously announced transaction with American International Group (AIG), to provide protection to AIG on its retained exposure to adverse development on Validus Re’s loss reserves.
The transaction was first announced in September.
As per the agreement, Enstar will provide $400 million of adverse development cover in excess of carried loss reserves on assumed reinsurance contracts underwritten by Validus Re
The cover became effective as of the closing of AIG’s sale of Validus Re to RenaissanceRe on November 1, when all regulatory approvals were obtained and all closing conditions were satisfied.
Further, RenRe has now closed its takeover of the reinsurer, which includes Validus Reinsurance Ltd., as well as its consolidated subsidiaries, AlphaCat Managers Ltd., and all renewal rights to the assumed reinsurance treaty unit of Talbot.
Earlier this year, Enstar Group announced that one of its wholly-owned subsidiaries closed a previously announced Loss Portfolio Transfer agreement with RACQ Insurance to reinsure 80% of RACQ’s motor vehicle Compulsory Third Party insurance liabilities covering accident years 2021 and prior.
