Enstar Group has announced that one of its subsidiaries has completed an adverse development cover reinsurance transaction with Maiden Reinsurance. Enstar did not name the subsidiary in its announcement.
The adverse development cover is with respect to Maiden Re’s quota share reinsurance contract with AmTrust Financial Services’s Bermuda subsidiary for losses incurred on or prior to December 31, 2018 in excess of a $2.178 billion retention, up to a $600 million limit.
In the transaction, Enstar’s subsidiary will receive $445 million of premium and post $445 million of collateral in the form of letters of credit to secure its obligations under the reinsurance agreement.
The retention, limit and premium were reduced from the previously announced transaction following the parties’ agreement to include only losses under the Bermuda quota share agreement between Maiden Re and AmTrust Bermuda.
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various closing conditions.
Enstar, Maiden Re, transaction, reinsurance