AIG inks $400m reserve deal with Enstar for Validus Re
American International Group (AIG) has sealed a $400 million reserve deal with legacy insurer Enstar to cover Validus Re’s loss reserves, following the sale of the reinsurance business to RenaissanceRe.
Enstar Group has agreed to provide AIG with $400 million of protection against adverse developments on the portion of Validus Re’s loss reserves to which AIG retains exposure following the closing of AIG’s sale of Validus Re.
Enstar will provide 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.
Dominic Silvester, Enstar’s chief executive officer, said: “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.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
