Enstar Group Limited’s Lloyd’s managing agency, StarStone Underwriting Limited, has completed a reinsurance-to-close deal with AXIS Managing Agency Limited, which sees Enstar’s Syndicate 2008 reinsure to close the 2015 and prior underwriting years of account of Novae Syndicate 2007.
Under the terms of the reinsurance-to-close transaction, Enstar will assume net reinsurance reserves of roughly £600 million (US$811mn) in relation to the portfolio and gross reserves of roughly £840 million (US$1.136bn).
Enstar’s Chief Executive Officer (CEO), Dominic Silvester, commented; “As one of several reinsurance-to-close transactions undertaken by Enstar recently – one of the largest transactions of its type in recent years – the Novae deal underlines Enstar’s capability as a leading reinsurance-to-close provider. By working closely with the Novae and AXIS teams, we were able to complete this significant transaction, highlighting our ability to efficiently enable our partners to restructure their liabilities, improve their capital position and strengthen their businesses.”
The transaction covers all the net reserves for losses and loss expenses associated with business underwritten by Novae Group in the 2015 and prior years, and is effective January 1st, 2018.
President and CEO of AXIS, Albert Benchimol, said; “This transaction provides AXIS Capital with finality on legacy Novae business underwritten in 2015 and prior years and positions the Company to focus on advancing leadership positions in our targeted specialty risk markets.”
