Enstar agrees ADC deal with Intact subsidiary RSA
Bermuda-based re/insurer and run-off specialist Enstar Group has entered into an adverse development cover (ADC) agreement with Royal & Sun Alliance Insurance Limited (RSA), a wholly owned subsidiary of Toronto-based property & casualty insurance company Intact Financial Corporation.
The deal will see Enstar provide ADC for certain UK, Irish and other business of RSA and its subsidiaries, in exchange for premium.
The adverse development cover will provide £400 million of aggregate coverage in excess of a £2.595 billion retention on losses occurring on or prior to December 31, 2020 on a diversified mix of commercial and personal insurance lines risks.
Enstar and RSA will co-participate on the cover, with Enstar providing 50 percent and RSA retaining the remaining 50 percent.
Completion of the transaction is subject to regulatory approval and satisfaction of various closing conditions. The transaction is expected to close during the third quarter of 2021.
Dominic Silvester (pictured), Enstar’s chief executive officer, said: “ Enstar is pleased to continue our partnership with RSA by delivering a bespoke run-off solution, which draws on our expertise and proven ability to execute complex transactions. The 50 percent co-participation structure provides strong alignment of interests whilst supporting Intact’s strategic objectives and reaffirms Enstar’s position as the partner of choice in the legacy market.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
