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January 11, 2022updated 17 Jan 2022 5:35am

Enstar signs $3.12bn loss portfolio transfer deal with Aspen Insurance

Enstar Group, through one of its subsidiaries, has announced a loss portfolio transfer (LPT) deal with Aspen Insurance for policies issued in 2019 and before.

Under the LPT deal, Enstar’s subsidiary will reinsure losses incurred on or before 31 December 2019 on Aspen’s mix of property, liability and specialty lines across the US, UK and other countries.

It will see Enstar assume net loss reserves of $3.12bn, which is subject to a cap of $3.57bn.

As part of adverse development cover between the firms that closed in June 2020, Enstar has already assumed $770m of loss reserves, which will be added into this deal..

Enstar CEO Dominic Silvester said: “The expansion of our reinsurance of Aspen’s legacy reserves is a great opportunity for us to play a larger role in managing a portfolio we know well. This transaction, which reflects our strong partnership with Aspen, provides an attractive growth opportunity and reaffirms our position as the preferred partner for global insurers seeking the transfer of significant legacy business.”

Aspen executive chairman and group chief executive officer Mark Cloutier said: “This transaction will positively impact our capital position and enable us to further deploy into the continued attractive market environment while significantly improving the protection of our balance sheet and future earnings from the potential impact of the recent soft market cycle.

“In addition, this transaction allows us to take forward our repositioned underwriting portfolio while continuing to focus on servicing the needs of our clients.”

The deal awaits regulatory approval and is expected to close in the first half of 2022.

In September 2021, Enstar wrapped up a $217.1m deal for a controlling stake in Enhanzed Re.

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