Enstar announces adverse development coverage agreement with AIG
Enstar Group announced that one of its wholly-owned subsidiaries has signed an agreement with American International Group, Inc. (“AIG”) to provide AIG with protection against adverse development on the portion of Validus Re’s loss reserves that AIG retains exposure to following the closing of AIG’s sale of Validus Re to RenaissanceRe.
Per the agreement, Enstar will provide $400 million of adverse development cover in excess of carried loss reserves on assumed reinsurance contracts underwritten by Validus Re.
The adverse development cover is expected to become effective at the time of closing of AIG’s sale of Validus Re to RenaissanceRe.
“Our agreement today with AIG is a further testament to our expertise in executing bespoke solutions that help deliver our partner’s strategic objectives. This transaction demonstrates the continued versatility of legacy risk solutions as a source of value creation, and our continued commitment toward sourcing and executing top-quality transactions.” – Dominic Silvester, Enstar’s Chief Executive Officer.