Enstar unit buoys Argo with loss portfolio transfer
A wholly-owned subsidiary of Bermudian-based Enstar Group Limited has signed an agreement for a loss portfolio transfer with island-based specialty insurance underwriter Argo Group International Holdings Ltd to reinsure a number of its direct US casualty insurance portfolios, including construction, relating to accident years 2011 to 2019.
Enstar’s subsidiary will provide ground up cover of $746 million and an additional $275 million of cover in excess of $821 million, up to a policy limit of $1.1 billion. Argo will retain a loss corridor of $75 million up to $821 million.
The closing of the transaction is subject to regulatory approval and other closing conditions and is expected to be completed in the second half of 2022.
Dominic Silvester, Enstar’s chief executive officer, said: “As this collaboration with Argo demonstrates, Enstar continues to be a market of choice for run-off solutions.
“We were pleased to be called upon to partner with the Argo team to design reinsurance that meets the company’s risk management objectives, while providing Enstar with an opportunity to contribute our legacy expertise to Argo’s US casualty book.”