Enstar and Aspen strengthen ties with new LPT

12-01-2022

Enstar and Aspen strengthen ties with new LPT

Dominic Silvester, CEO, Enstar

Bermuda-based insurer Enstar Group has reached an agreement with Aspen Insurance Holdings on a loss portfolio transfer (LPT) for its 2019 and prior business. 

A subsidiary Enstar will reinsure losses on a mix of property, liability and specialty lines across the US, UK and other jurisdictions. It will assume net loss reserves of $3.12 billion in the LPT transaction, subject to a limit of $3.57bn. 

An existing adverse development cover (ADC) between the parties under which Enstar assumed $770 million of loss reserves closed in June 2020 will be absorbed into the LPT. The ADC will remain in place until the completion of the new transaction, which is subject to regulatory approvals and other closing conditions.

“The expansion of our reinsurance of Aspen’s legacy reserves is a great opportunity for us to play a larger role in managing a portfolio we know well,” said Enstar chief executive officer Dominic Silvester. “This transaction, which reflects our strong partnership with Aspen, provides an attractive growth opportunity and reaffirms our position as the preferred partner for global insurers seeking the transfer of significant legacy business.”

Mark Cloutier, Aspen’s executive chairman and group chief executive officer, said: “Continuing to build capital strength, flexibility and efficiency is an important part of our strategy, and we are therefore pleased to announce this loss portfolio transfer with Enstar, which is a natural evolution of our previous reinsurance agreement and builds upon our strong relationship.

“This transaction will positively impact our capital position and enable us to further deploy into the continued attractive market environment while significantly improving the protection of our balance sheet and future earnings from the potential impact of the recent soft market cycle.

“In addition, this transaction allows us to take forward our repositioned underwriting portfolio while continuing to focus on servicing the needs of our clients.”

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Enstar, Aspen, loss, portfolio, reinsurance, liability, Insurance, Holdings, losses

Bermuda Re