- AXIS Capital Holdings Limited and Enstar Group Limited have completed a $3.1 billion loss portfolio transfer transaction.
- The transaction involves a 75% quota share, with AXIS retroceding $2.3 billion of reinsurance segment reserves to Enstar.
- The deal received necessary regulatory approvals and met all closing conditions.
AXIS Capital Holdings Limited (AXS, Financial) and Enstar Group Limited (ESGR) have successfully finalized a significant loss portfolio transfer (LPT) transaction. This agreement covers reinsurance segment reserves primarily linked to the casualty portfolios of underwriting years 2021 and earlier.
The LPT transaction, amounting to $3.1 billion as of September 30, 2024, is structured as a 75% ground-up quota share. In this arrangement, AXIS Capital has retroceded $2.3 billion in reinsurance segment reserves to Enstar's wholly owned subsidiary, Cavello Bay Reinsurance Limited. Both Standard & Poor's and A.M. Best have awarded Cavello Bay favorable 'A' financial strength ratings.
With its headquarters in Bermuda, AXIS Capital, a global specialty underwriter, boasts a shareholders' equity of $6.1 billion as of September 30, 2024. The company's widespread operations span the United States, Europe, Singapore, and Canada. AXIS maintains robust financial strength ratings of "A+" from Standard & Poor's and "A" from A.M. Best.
Enstar, listed on NASDAQ, has built a reputation as a leader in legacy acquisitions, with over 120 company and portfolio acquisitions since its inception in 2001. Operating across several regions, including Bermuda, the United States, the United Kingdom, Australia, Lichtenstein, and Belgium, Enstar offers innovative capital release solutions.
