AXIS-Novae signs reinsurance agreement with StarStone
AXIS Capital Holdings has announced that subsidiary AXIS Managing Agency, which manages Syndicate 2007, has signed a reinsurance deal with StarStone.
The agreement is a Reinsurance to Close (RITC) arrangement for the 2015 and prior years of account of Syndicate 2007, covering the net reserve for losses and loss expenses associated with all business underwritten by Novae Group, which was bought by AXIS Capital in 2017.
The deal was signed with Syndicate 2008, which is managed by StarStone Underwriting, a subsidiary of Enstar Group, and came into force from the beginning of the year. Both parties will work closely together to ensure a smooth transition.
According to AXIS Capital the transaction resulted in a positive financial impact, which has been reflected in the fair values of Novae's assets acquired and liabilities assumed on October 2, 2017, the acquisition date.
“This transaction provides AXIS Capital with finality on legacy Novae business underwritten in 2015 and prior years and positions the Company to focus on advancing leadership positions in our targeted specialty risk markets,” said Albert Benchimol, President and CEO of AXIS.
A RITC transaction is a reinsurance agreement that closes one or more years of account of a syndicate by transferring the responsibility for discharging all of the liabilities that attach to the closing year(s) of account, net of the right to any income and recoveries due to the closing year(s) of account in return for a premium.
In conjunction with this announcement, the company has furnished a Current Report on Form 8-K with the US Securities and Exchange Commission containing Novae balance sheet information including details of fair value adjustments to assets acquired and liabilities assumed at the acquisition date. In addition, the company has furnished supplemental financial information presenting unaudited historical financial information for Novae for the nine months ended September 30, 2017, and the quarterly periods therein.
