A wholly owned subsidiary of Enstar Group Limited has completed an adverse development cover (ADC) transaction with AXA XL, the property & casualty and specialty risk division of AXA.
handshake-bwUnder the terms of the arrangement, Enstar’s subsidiary assumed reinsurance losses incurred on or prior to December 31st, 2019, on a diversified mix of global casualty and professional lines for a premium equal to the transfer of loss reserves of 90% of $1.55 billion, or $1.395 billion.
The Enstar subsidiary is set to provide 90% protection on two layers, with AXA XL retaining 10%.
The first layer provides $1.55 billion of cover in excess of a $9.438 billion retention and the second provides an additional $1 billion of cover in excess above $11.363 billion.
The transaction completed after the receipt of regulatory approvals and satisfaction of various other closing conditions.
