Enstar And Artex Form Strategic ILS Deal
Enstar Group Limited and Artex Capital Solutions announced a strategic arrangement to offer streamlined exit solutions for investors in the Artex Insurance-Linked Securities [ILS] transformation vehicles.
A spokesperson said, “The arrangement will provide investors access to a diversified suite of prospective and retrospective exit products [“Exit Options”] through Cavello Bay Reinsurance Limited, Enstar’s wholly owned subsidiary, rated “A” by AM Best and S&P.
“This suite of solutions will support investors throughout the investment cycle. Prospective solutions, delivered through forward exit options, will provide future liquidity based on pre-defined terms, while retrospective solutions, including novations, loss portfolio transfers, adverse development covers and the purchase of investor interests, will deliver finality on existing exposures. Together, these Exit Options are designed to accelerate capital release, reduce trapped capital and provide balance sheet finality, mitigating against loss-creep risk.
“With a combined 60-year track record in pioneering complex risk management solutions, this arrangement brings together the opportunity for investors to leverage two of the leading specialty risk transfer firms in the market.”
Enstar’s Chief Strategy Officer, David Ni, said: “Investors are increasingly seeking greater certainty and flexibility in how they manage their exposures. We are thrilled to work with Artex to respond directly to that need, drawing on our experience in the ILS market and our track record of structuring innovative capital release and risk management solutions.”
Kathleen Faries, CEO, Artex Capital Solutions, added: “This collaboration with Enstar is a significant step in our mission to provide innovative and tailored solutions for our clients. By combining our expertise, we are creating a seamless and efficient process that will redefine exit solutions in the ILS market. Together, we are enabling an efficient way for investors to unlock capital, stabilise earnings, and refocus on core priorities.”
