AIG secures adverse development cover for Validus sale
Bermuda-based legacy insurer Enstar Group has agreed to provide American International Group with $400 million of protection against adverse developments from its sale of Validus Re to RenaissanceRe.
The agreement will see Enstar provide AIG with protection against adverse development on the portion of Validus Re’s loss reserves to which AIG retains exposure following the closing of AIG’s sale of Validus Re.
Enstar will provide $400 million of adverse development cover in excess of carried loss reserves on assumed reinsurance contracts underwritten by Validus Re.
The adverse development cover is expected to become effective at the time of closing of AIG’s sale of Validus Re to RenaissanceRe.
Dominic Silvester, Enstar’s chief executive officer, said: “Our agreement today with AIG is a further testament to our expertise in executing bespoke solutions that help deliver our partner’s strategic objectives.
“This transaction demonstrates the continued versatility of legacy risk solutions as a source of value creation, and our continued commitment toward sourcing and executing top-quality transactions.”