Enstar to provide adverse development cover for AXA XL

Enstar Group has signed an agreement with AXA XL that will see it provide adverse development cover for a diversified mix of global casualty and professional lines.

The cover extends to losses incurred on or prior to December 31, 2019, for a premium equal to the transfer of loss reserves of 90 percent of $1.55 billion. AXA XL will retain the other 10 percent.

The deal was signed by a wholly owned subsidiary of Enstar, with protection provided on two layers: one providing $1.55 billion of cover in excess of a $9.44 billion retention, and another providing an additional $1 billion of cover in excess above $11.363 billion.

The transaction remains subject to regulatory approvals and satisfaction of various closing conditions but is expected to close around the end of the first quarter 2021.