A wholly owned subsidiary of Bermudian-based insurer Enstar Group Limited has closed a previously announced agreement for a ground-up loss portfolio transfer with island-based Aspen Insurance Holdings Limited and its subsidiaries for their 2019 and prior business.

Enstar said it will assume net loss reserves of $3.12 billion, subject to a limit of $3.57 billion.

The existing adverse development cover between the parties that closed in June 2020, under which Enstar assumed $770 million of loss reserves, has been absorbed into the LPT.

As a result of the LPT, Enstar said, it assumed an incremental $2.35 billion of net loss reserves, with a diverse mix of property, liability and specialty lines, in exchange for incremental premium of $2.39 billion, and will assume claims control.

The amount of net loss reserves assumed, as well as the premium and limit amounts provided in the LPT agreement, will be adjusted for claims paid between October 1, 2021 and the closing date of the transaction, pursuant to the terms of the contract.

Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.