Enstar and RSA in bespoke solution
A wholly-owned subsidiary of Bermuda-based insurer Enstar Group Ltd has signed an agreement with Royal & Sun Alliance Insurance Limited to provide adverse development cover for certain UK, Irish and other business of RSA and its subsidiaries, in exchange for premium.
RSA is a wholly-owned subsidiary of Toronto-based property & casualty insurance company, Intact Financial Corporation.
Enstar said the adverse development cover will provide £400 million of aggregate coverage in excess of a £2.595 billion retention on losses occurring on or prior to December 31, 2020 on a diversified mix of commercial and personal insurance lines risks.
Enstar and RSA will co-participate on the cover, with Enstar providing 50 per cent and RSA retaining the remaining 50 per cent.
Completion of the transaction is subject to regulatory approval and satisfaction of various closing conditions. The transaction is expected to close during the third quarter of 2021.
Dominic Silvester, chief executive officer of Enstar, said: “Enstar is pleased to continue our partnership with RSA by delivering a bespoke run-off solution, which draws on our expertise and proven ability to execute complex transactions.
“The 50 per cent co-participation structure provides strong alignment of interests whilst supporting Intact’s strategic objectives and reaffirms Enstar’s position as the partner of choice in the legacy market.”