Enstar Group Limited has announced one of its subsidiaries has signed an agreement with American International Group, Inc. to provide protection against adverse development on a portion of Validus Re’s loss reserves.
It is one of Enstar’s wholly-owned subsidiaries that has joined this agreement.
AIG retains exposure to some portion of Validus Re’s loss reserve following the closing of the sale to RenaissanceRe.
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 adverse development cover is expected to become effective at the time of the closing of AIG’s sale of Validus Re to RenaissanceRe.
Dominic Silvester, Enstar’s Chief Executive Officer, commented, “Our agreement today with AIG is a further testament to our expertise in executing bespoke solutions that help deliver our partner’s strategic objectives.
“This transaction demonstrates the continued versatility of legacy risk solutions as a source of value creation, and our continued commitment toward sourcing and executing top-quality transactions.”
