Aspen completes massive $3.6bn LPT deal with Enstar

Bermuda-based re/insurer  Aspen’s $3.57 billion ground-up loss portfolio transfer deal with run-off specialist  Enstar has completed following receipt of regulatory approvals and satisfaction of closing conditions.

A wholly owned subsidiary of  Enstar will assume $3.12 billion of net loss reserves, subject to a limit of $3.57 billion, of  Aspen Insurance Holdings and its subsidiaries for their 2019 and prior business.

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 incremental premium of $2.39 billion, and 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 October 1, 2021 and the closing date of the transaction, pursuant to the terms of the contract.

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