Aspen enters adverse development cover reinsurance agreement with Enstar

Aspen Insurance Holdings has entered into an adverse development cover reinsurance agreement with a wholly owned subsidiary of Enstar Group.

The transaction will see Enstar’s subsidiary reinsure losses incurred on or prior to December 31, 2019 on a diversified mix of property, liability and specialty lines across the US, UK and Europe, for a premium of $770 million.

Enstar will provide $770 million of cover in excess of a $3.805 billion retention, and an additional $250 million of cover in excess above $4.815 billion.

The transaction is subject to regulatory approvals and satisfaction of various other closing conditions. It is expected to close in the first half of 2020.