Insurer Aspen Completes $3.12B Loss Portfolio Transfer With Run-Off Specialist Enstar

Enstar Group Ltd., the Bermuda-based legacy acquisition specialist, has completed a previously announced loss portfolio transfer agreement (LPT) with Aspen Insurance Holdings Ltd. and its subsidiaries for their 2019 and prior business.

Enstar will assume net loss reserves of $3.12 billion, subject to a limit of $3.57 billion in this ground-up LPT. Reserves cover a diverse mix of property, liability and specialty lines and Enstar will assume claims control.

The amount 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 Oct. 1, 2021 and the closing date of the transaction.

An existing adverse development cover (ADC) between the parties, in which Enstar assumed $770 million of loss reserves from Aspen, closed in June 2020. This ADC has been absorbed into the LPT.

As a result of the LPT, Enstar assumed an incremental $2.35 billion of net loss reserves in exchange for incremental premium of $2.39 billion.

The incremental net loss reserves of $2.35 billion is equal to the new LPT net loss reserves of $3.12 billion minus the original ADC net loss reserves of $770 million. Further, the incremental premium of $2.39 billion is the new LPT premium of $3.16 billion minus the original ADC premium of $770 million.

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

About Enstar

Enstar is a NASDAQ-listed global re/insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. Enstar has acquired over 110 companies and portfolios since its formation in 2001.

Topics Carriers Profit Loss