Enstar has completed a loss portfolio transfer with Aspen that will see the former assume net losses of $3.12bn.
A release from the firm said that the net losses that could be assumed by Enstar were limited to $3.57bn.
According to the company, the adverse development cover between the parties that closed in June 2020, under which Enstar assumed $770m of loss reserves has been absorbed into this latest transfer. Enstar said it had assumed an incremental $2.35bn of net loss reserves, with a diverse mix of property, liability and specialty lines, in exchange for incremental premium of $2.39bn, and will assume claims control.
The amount of net loss reserves assumed, as well as the premium and limit amounts provided in the LPT agreement, will be adjusted for claims paid between 1 October 2021 and the closing date of the transaction, pursuant to the terms of the contract.
Enstar originally announced the transaction with Aspen in January this year.
At the time, Dominic Silvester, CEO of Enstar, said: “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. This transaction, which reflects our strong partnership with Aspen, provides an attractive growth opportunity and reaffirms our position as the preferred partner for global insurers seeking the transfer of significant legacy business.”
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.
