Enstar Completes ADC Agreement With RSA
Enstar Group Limited (NASDAQ: ESGR) has finalized an agreement with Royal & Sun Alliance Insurance Limited to provide £400 million in adverse development cover (ADC) for select business lines in the UK and Ireland.
Sentiment and the balance of points
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Rhea-AI Summary
Enstar Group Limited (NASDAQ: ESGR) has finalized an agreement with Royal & Sun Alliance Insurance Limited to provide £400 million in adverse development cover (ADC) for select business lines in the UK and Ireland. The agreement entails a £2.595 billion retention on losses occurring before December 31, 2020. Enstar will cover 50% of the ADC while RSA retains the other 50%. Regulatory approvals have been obtained, marking this as Enstar’s second significant deal with RSA, highlighting the importance of legacy solutions in facilitating mergers and acquisitions in the global insurance sector.
Positive
- Finalized agreement with RSA for £400 million in ADC coverage.
- Enstar retains 50% of the ADC, demonstrating confidence in risk management.
- Strengthens Enstar's portfolio in the global insurance market.
Negative
- None.
Details
News Market Reaction – ESGR
The recorded move for ESGR in the trading session of this news was -0.71%.
Data tracked by StockTitan Argus. Session date unavailable.
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HAMILTON, Bermuda, Oct. 06, 2021 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) announced today that one of its wholly owned subsidiaries has closed a previously announced agreement with Royal & Sun Alliance Insurance Limited (“RSA”), a wholly owned subsidiary of Toronto-based Intact Financial Corporation, to provide adverse development cover (“ADC”) for certain UK, Irish, and other business of RSA and its subsidiaries.
The ADC provides
Completion of the transaction followed receipt of regulatory approval and satisfaction of various closing conditions.
Dominic Silvester, Enstar’s Chief Executive Officer, said: “This transaction, our second large deal with RSA, shows the role that well-designed, smoothly executed legacy solutions can play in facilitating M&A activity in the global insurance market.”
About Enstar
Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.
Contact: Group Communications
Telephone: +1 (441) 292-3645
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