James River and Enstar close adverse development pact

James River Group and legacy re/insurer Enstar Group have completed their previously announced adverse development agreement.

Bermuda-based Enstar subsidiary Cavello Bay Re has also completed its previously announced $12.5 million investment in James River common stock.

Cavello Bay Re has provided $75 million of limit in excess of the existing $160 million ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance Company earlier this year.

“The transaction provides further protection against future adverse reserve development for certain US casualty exposures within James River’s excess & surplus Lines segment for accident years 2010 to 2023,” Enstar said in a statement.

The announcement was originally made in November. James River is also based in Bermuda although it plans to redomicile to the US in 2025.