Enstar acquires Novae legacy business
Bermudian run-off specialist Enstar Group Ltd has struck a deal with Axis Capital to acquire Novae Group's legacy reinsurance business dating from 2015 and before.
Axis, the Bermudian-based insurer and reinsurer, acquired Novae last year in a deal worth $611.4 million.
StarStone Underwriting Ltd, Enstar's Lloyds managing agency, said it had finalised a reinsurance-to-close transaction with Axis Managing Agency Ltd.
Under the agreement, Enstar's Syndicate 2008 will reinsure to close the legacy business in question of Novae Syndicate 2007.
Enstar will assume net reinsurance reserves of approximately £600 million ($811 million) relating to the portfolio and gross reserves of approximately £840 million, effective January 1, 2018.
Dominic Silvester, Enstar's chief executive officer, said: “As one of several reinsurance-to-close transactions undertaken by Enstar recently — one of the largest transactions of its type in recent years — the Novae deal underlines Enstar's capability as a leading reinsurance-to-close provider.
“By working closely with the Novae and Axis teams, we were able to complete this significant transaction, highlighting our ability to efficiently enable our partners to restructure their liabilities, improve their capital position and strengthen their businesses.”
Enstar has acquired more than 80 companies and portfolios since it launched in 2001 and has built up about $14 billion in assets, making it a major player in the run-off space.
Albert Benchimol, CEO of Axis, said: “This transaction provides Axis Capital with finality on legacy Novae business underwritten in 2015 and prior years and positions the company to focus on advancing leadership positions in our targeted specialty risk markets.”