AM Best: Cavello Bay Ratings Unchanged
AM Best has confirmed that Cavello Bay Reinsurance Limited’s credit ratings remain unchanged following Enstar Group’s agreement to reinsure a $4.8 billion portfolio of reserves from Markel Group.
The ratings agency said, “AM Best has commented that the Credit Ratings [ratings] of Cavello Bay Reinsurance Limited [Cavello Bay] [Bermuda], a subsidiary of Enstar Group Limited [ENSTAR] [Bermuda], are unchanged following Enstar’s announcement that it has entered into a reinsurance agreement with Markel Group Inc. [Markel] [NYSE: MKL].
“On October 28, 2026, Enstar entered an agreement with Markel to reinsure Markel’s global reinsurance reserves and certain exited lines within its insurance operations, including 2025 and prior underwriting years, within a $4.8 billion portfolio. Markel will retain the first $2.6 billion, ceding the next $2.3 billion to Enstar on a last-to-pay basis. Enstar will receive $2.4 billion to assume the reserves from Markel and will also provide $1.2 billion of adverse development cover, attaching above the $4.8 billion in reserves.
“AM Best does not expect Enstar’s balance sheet strength or its risk-adjusted capitalization measured by the BCAR to materially deviate from the projected Best’s Capital Adequacy Ratio [BCAR], score at 99.6% VaR for 2026.
“The transaction is expected to close by the end of fourth-quarter 2026 and is subject to regulatory approval and satisfaction of customary conditions precedent to closing the deal.”
