A subsidiary of Enstar Group Limited has completed an adverse development cover reinsurance transaction with Maiden Reinsurance Ltd.
The adverse development cover was with respect to Maiden Re’s quota share reinsurance contract with AmTrust Financial Services, Inc.’s Bermuda subsidiary (“AmTrust Bermuda”) for losses incurred on or prior to December 31, 2018 in excess of a $2.178 billion retention, up to a $600 million limit.
In the transaction, Enstar’s subsidiary will receive $445 million of premium and post $445 million of collateral in the form of letters of credit to secure its obligations under the reinsurance agreement.
The retention, limit, and premium were reduced from the previously announced transaction following the parties’ agreement to include only losses under the Bermuda quota share agreement between Maiden Re and AmTrust Bermuda.
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various closing conditions, Enstar said.
Learn more: www.enstargroup.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].