A wholly owned subsidiary of legacy player Enstar Group has entered into a $75 million adverse development cover (ADC) reinsurance agreement with certain subsidiaries of Bermuda-domiciled insurance holding company, James River Group Holdings.
Under the terms of the agreement, Enstar will provide the $75 million of limit in excess of the existing $160 million ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance Company, Inc. earlier this year.
The deal further protects against future adverse reserve development for certain U.S. casualty exposures within James River’s Excess & Surplus (E&S) Lines segment for accident years 2010 to 2023.
Enstar’s subsidiary will also make a $12.5 million investment in James River common stock.
The completion of this transaction remains subject to regulatory approval and satisfaction of other customary closing conditions.
David Ni, Chief Strategy Officer, Enstar, commented, “We are pleased to work with James River on a bespoke solution that further de-risks their balance sheet and provides equity capital to take advantage of the robust E&S market.”
