Enstar Announces ADC Agreement With AXA XL
February 25 2021 - 06:11AM
Enstar Group Limited (NASDAQ: ESGR) announced today that one of its
wholly owned subsidiaries has signed an agreement to provide
adverse development cover to AXA XL, a division of AXA.
In the transaction, Enstar’s subsidiary will
cover losses incurred on or prior to December 31, 2019 on a
diversified mix of global casualty and professional lines for a
premium equal to the transfer of loss reserves of 90% of $1.550
billion (or $1.395 billion).
Enstar’s subsidiary will provide 90% protection
(with AXA XL retaining 10%) on two layers, the first providing
$1.550 billion of cover in excess of a $9.438 billion retention and
the second providing an additional $1.0 billion of cover in excess
above $11.363 billion.
Completion of the transaction is subject to
regulatory approvals and satisfaction of various closing
conditions. The transaction is expected to close around the end of
the first quarter 2021.
About Enstar
Enstar is a NASDAQ-listed leading global
insurance group that offers innovative capital release solutions
through its network of group companies in Bermuda, the United
States, the United Kingdom, Continental Europe, Australia, and
other international locations. A market leader in completing legacy
acquisitions, Enstar has acquired over 100 companies and portfolios
since its formation in 2001. For further information about Enstar,
see www.enstargroup.com.
Cautionary Statement
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include
statements regarding the intent, belief or current expectations of
Enstar and its management team. Investors are cautioned that any
such forward-looking statements speak only as of the date they are
made, are not guarantees of future performance and involve risks
and uncertainties, and that actual results may differ materially
from those projected in the forward-looking statements as a result
of various factors. In particular, Enstar may not be able to
complete the proposed transaction on the terms summarized above or
other acceptable terms, or at all, due to a number of factors,
including but not limited to the failure to obtain regulatory
approvals or to satisfy other closing conditions. In addition, the
evolving COVID-19 pandemic has caused significant economic and
financial turmoil globally, as well as uncertainty and volatility
in the financial markets. Due to the global uncertainty, we are
unable to predict the longer-term effects of the pandemic on our
business at this time. Important risk factors regarding Enstar can
be found under the heading "Risk Factors" in Enstar’s Form 10-K for
the year ended December 31, 2019 and in Enstar’s Form 10-Q for the
three and nine months ended September 30, 2020 and are incorporated
herein by reference. Furthermore, Enstar undertakes no obligation
to update any written or oral forward-looking statements or
publicly announce any updates or revisions to any of the
forward-looking statements contained herein, to reflect any change
in its expectations with regard thereto or any change in events,
conditions, circumstances or assumptions underlying such
statements, except as required by law.
Contact: |
Group Communications |
Telephone: |
+1 (441) 292-3645 |
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