Enstar acquires ILS re/insurer

Enstar Group has acquired a Bermuda-domiciled Class 3B insurer and segregated accounts company in what it said was its second transaction in the property insurance-linked securities space. 

The legacy re/insurer said the acquisition of the company, which is also a segregated accounts company, was carried out by its subsidiary Cavello Bay Reinsurance.    

Enstar sad the reinsurer underwrote property reinsurance business between 2020 and 2023 on behalf of third-party investors, assuming the risk through retrocession agreements with a fronting carrier. The Reinsurer had $66 million of shareholders’ equity at the end of July 2024.

The reinsurer will be merged into Cavello Bay and a consolidated and amended retrocession agreement between the fronting carrier and Cavello Bay will become effective.

Dominic Silvester, chief executive officer of Enstar, said: "This acquisition is our second transaction in the property ILS space in recent months, which we see as a growth market for legacy solutions. The deal structure eliminates collateral requirements, demonstrating the benefit of Cavello Bay’s strong balance sheet and financial strength rating.”

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