Enstar Agrees ADC Agreement With James River
Enstar announced that one of its wholly-owned subsidiaries has entered into an adverse development cover [ADC] reinsurance agreement with certain subsidiaries of James River Group Holdings, Ltd.
A spokesperson said, “Under the terms of the agreement, Enstar’s subsidiary will provide $75 million of limit in excess of the existing $160 million ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance Company, Inc. earlier this year.
“The transaction will provide further protection against future adverse reserve development for certain U.S. casualty exposures within James River’s Excess & Surplus [E&S] Lines segment for accident years 2010 to 2023. Enstar’s subsidiary will also make a $12.5 million investment in James River common stock.
“Completion of the transaction is subject to regulatory approval and satisfaction of other customary closing conditions.”
David Ni, Enstar Chief Strategy Officer, said, “We are pleased to work with James River on a bespoke solution that further de-risks their balance sheet and provides equity capital to take advantage of the robust E&S market.”
