Bermuda-based Enstar Group has agreed to provide adverse development cover (ADC) to re/insurer AXA XL for a diversified mix of global casualty and professional lines.
The cover extends to losses incurred on or prior to December 31, 2019, for a premium equal to the transfer of loss reserves of 90 percent of $1.55 billion (or $1.395 billion). AXA XL will retain the other 10 percent.
The deal was signed by a wholly owned subsidiary of Enstar, with protection provided on two layers - one providing $1.55 billion of cover in excess of a $9.44 billion retention, and another providing an additional $1 billion of cover in excess above $11.363 billion.
The transaction remains subject to regulatory approvals and satisfaction of various closing conditions but is expected to close around the end of the first quarter 2021.
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