Enstar Group has announced that it has entered into a major loss portfolio transfer (LPT) deal with specialty insurance underwriter Argo Group International Holdings.
Under the terms of the LPT, Enstar will reinsure a number of Argo’s direct U.S. casualty insurance portfolios, including construction, relating to accident years 2011 to 2019.
A wholly-owned subsidiary of Enstar will provide ground up cover of $746 million, and an additional $275 million of cover in excess of $821 million, up to a policy limit of $1.1 billion.
Argo, meanwhile, will retain a loss corridor of $75 million up to $821 million.
“As this collaboration with Argo demonstrates, Enstar continues to be a market of choice for run-off solutions,” said Dominic Silvester, Enstar’s Chief Executive Officer.
“We were pleased to be called upon to partner with the Argo team to design reinsurance that meets the company’s risk management objectives, while providing Enstar with an opportunity to contribute our legacy expertise to Argo’s U.S. casualty book.”
The closing of the transaction remains subject to regulatory approval and other closing conditions and is expected to be completed in the second half of 2022.
Enstar has already completed a major LPT transaction with Aspen earlier in 2022, assuming net loss reserves of $3.12 billion on a diverse mix of Aspen’s property, liability, and specialty lines across the UK, US, and other jurisdictions.