Enstar provides adverse development cover to Australian insurer
Legacy re/insurer Enstar Group has signed an adverse development cover agreement over the equivalent of US$1.7 billion of reserves with a leading Australian insurer.
Bermuda-based Enstar said it will provide the equivalent of US$430 million of excess cover through a subsidiary to long-tail insurance business issued by Insurance Australia Group (IAG). The cover includes product & public liability, compulsory third-party motor, professional risks and workers’ compensation for losses incurred on or prior to June 30, 2023.
Dominic Silvester, Enstar chief executive officer, said: “We are pleased to provide a bespoke reinsurance solution that will support IAG in reducing financial risk, capital requirements and earnings volatility. This transaction demonstrates our strong capabilities in the Australian market as we continue to strengthen our position as the partner of choice across global markets.”
Completion of the transaction is subject to regulatory approval and satisfaction of various closing conditions.
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