Enstar Completes ADC Agreement With RSA
Enstar Group Limited announced that one of its wholly owned subsidiaries has closed a previously announced agreement with Royal & Sun Alliance Insurance Limited.
A spokesperson said, “Enstar Group Limited announced today that one of its wholly owned subsidiaries has closed a previously announced agreement with Royal & Sun Alliance Insurance Limited [“RSA”], a wholly owned subsidiary of Toronto-based Intact Financial Corporation, to provide adverse development cover [“ADC”] for certain UK, Irish, and other business of RSA and its subsidiaries.
“The ADC provides £400 million of aggregate coverage in excess of a £2.595 billion retention on losses occurring on or prior to December 31, 2020 within a diversified portfolio of commercial and personal insurance lines risks. Enstar and RSA co-participate on the cover, with Enstar providing 50% and RSA retaining the remaining 50%. Completion of the transaction followed receipt of regulatory approval and satisfaction of various closing conditions.”
Dominic Silvester, Enstar’s Chief Executive Officer, said: “This transaction, our second large deal with RSA, shows the role that well-designed, smoothly executed legacy solutions can play in facilitating M&A activity in the global insurance market.”
