RSA and Enstar complete ADC deal
Bermuda-based insurer Enstar Group has completed its adverse development cover (ADC) with Royal & Sun Alliance Insurance (RSA). First announced in July, the agreement provides RSA and subsidiaries with £400 million of aggregate coverage in excess of a £2.595 billion retention.
The cover relates to pre-2021 losses within a portfolio of commercial and personal insurance lines risks written by the businesses in the UK and Ireland.
The completion of the deal follows regulatory approval and satisfaction of various closing conditions.
In 2017, RSA entered a reinsurance agreement with Enstar to dispose of £834m liabilities relating to its UK legacy insurance business written before 2006.
Dominic Silvester, Enstar’s Chief Executive Officer, said: “This transaction, our second large deal with RSA, shows the role that well-designed, smoothly executed legacy solutions can play in facilitating M&A activity in the global insurance market.”
