Enstar complets loss portfolio transfer with Aspen

Enstar Group announced that one of its wholly-owned subsidiaries has closed a previously announced agreement for a ground-up loss portfolio transfer with Aspen and its subsidiaries for their 2019 and prior business (the “LPT”). Enstar will assume net loss reserves of $3.12 billion, subject to a limit of $3.57 billion.

The existing adverse development cover between the parties that closed in June 2020, under which Enstar assumed $770 million of loss reserves (the “ADC”), has been absorbed into the LPT.

As a result of the LPT, Enstar assumed an incremental $2.35 billion of net loss reserves, with a diverse mix of property, liability, and specialty lines, in exchange for an incremental premium of $2.39 billion, and will assume claims control.

The number of net loss reserves assumed, as well as the premium and limit amounts provided in the LPT agreement, will be adjusted for claims paid between October 1, 2021, and the closing date of the transaction, pursuant to the terms of the contract.

Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.