AXIS Capital Finality On Legacy Novae Business

January 30, 2018

AXIS Capital Holdings Limited announced that AXIS Managing Agency Ltd, a subsidiary of AXIS Capital and the managing agent of Syndicate 2007 has entered into an agreement for the Reinsurance to Close [RITC] of the 2015 and prior years of account of Syndicate 2007.

“This RITC transaction covers the net reserve for losses and loss expenses associated with all business underwritten by Novae Group plc [Novae] in the 2015 and prior years,” the company said.

“The transaction resulted in a positive financial impact, which has been reflected in the fair values of Novae’s assets acquired and liabilities assumed on October 2, 2017, the acquisition date.

“The agreement has been entered into with Syndicate 2008, which is managed by StarStone Underwriting Limited [StarStone], a subsidiary of Enstar Group Limited, and is effective as of January 1, 2018. Both parties will work closely together to ensure a smooth transition.”

Albert Benchimol, President and CEO of AXIS, commented: “This transaction provides AXIS Capital with finality on legacy Novae business underwritten in 2015 and prior years and positions the Company to focus on advancing leadership positions in our targeted specialty risk markets.”

A RITC transaction is a reinsurance agreement that closes one or more years of account of a syndicate by transferring the responsibility for discharging all of the liabilities that attach to the closing year[s] of account, net of the right to any income and recoveries due to the closing year[s] of account in return for a premium.

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