Enstar Agrees ADC Agreement with James River
Enstar Group (Nasdaq: ESGR) announced that its subsidiary has entered into an adverse development cover (ADC) reinsurance agreement with James River Group Holdings subsidiaries. The agreement provides $75 million of limit exceeding the existing $160 million ADC coverage from State National Insurance Company. This transaction offers additional protection against future adverse reserve development for U.S. casualty exposures in James River's Excess & Surplus Lines segment for accident years 2010-2023. Additionally, Enstar's subsidiary will invest $12.5 million in James River common stock. The deal's completion depends on regulatory approval and other closing conditions.
Enstar Group (Nasdaq: ESGR) ha annunciato che la sua filiale ha stipulato un accordo di riassicurazione per la copertura dello sviluppo avverso (ADC) con le filiali di James River Group Holdings. L'accordo prevede un limite di $75 milioni che supera la copertura ADC esistente di $160 milioni fornita da State National Insurance Company. Questa transazione offre ulteriore protezione contro futuri sviluppi avversi delle riserve per le esposizioni alle responsabilità civili negli Stati Uniti nel segmento Excess & Surplus Lines di James River per gli anni di incidenti dal 2010 al 2023. Inoltre, la filiale di Enstar investirà $12,5 milioni in azioni comuni di James River. Il completamento dell'accordo dipende dall'approvazione normativa e da altre condizioni di chiusura.
Enstar Group (Nasdaq: ESGR) anunció que su subsidiaria ha firmado un acuerdo de reaseguro de cobertura de desarrollo adverso (ADC) con las subsidiarias de James River Group Holdings. El acuerdo proporciona un límite de $75 millones que excede la cobertura ADC existente de $160 millones de State National Insurance Company. Esta transacción ofrece protección adicional contra futuros desarrollos adversos de reservas para exposiciones de responsabilidad civil en EE. UU. en el segmento de Líneas Excedentes y Superiores de James River para los años de accidentes 2010-2023. Además, la subsidiaria de Enstar invertirá $12.5 millones en acciones comunes de James River. La finalización del acuerdo depende de la aprobación regulatoria y de otras condiciones de cierre.
엔스타 그룹 (Nasdaq: ESGR)은 그 자회사가 제임스 리버 그룹 홀딩스의 자회사와 불리한 발전 보장(ADC) 재보험 계약을 체결했다고 발표했습니다. 이 계약은 State National Insurance Company의 기존 $1억 6천만 달러 ADC 보장을 초과하는 $7천5백만 달러의 한도를 제공합니다. 이 거래는 제임스 리버의 초과 및 잉여 보험 섹터에서 2010년부터 2023년까지의 사고 연도에 대한 미국 배상 책임 노출에 대한 향후 불리한 준비금 개발에 대한 추가 보호를 제공합니다. 또한, 엔스타의 자회사는 제임스 리버 보통주에 $1천2백5십만 달러를 투자할 것입니다. 거래의 완료는 규제 승인 및 기타 마감 조건에 따라 다릅니다.
Enstar Group (Nasdaq: ESGR) a annoncé que sa filiale a conclu un accord de réassurance pour une couverture de développement défavorable (ADC) avec les filiales de James River Group Holdings. L'accord prévoit une limite de 75 millions de dollars, dépassant la couverture ADC existante de 160 millions de dollars fournie par State National Insurance Company. Cette transaction offre une protection supplémentaire contre le développement défavorable futur des réserves pour les risques de responsabilité aux États-Unis dans le segment Excess & Surplus Lines de James River pour les années d'accidents de 2010 à 2023. De plus, la filiale d'Enstar investira 12,5 millions de dollars dans des actions ordinaires de James River. La finalisation de l'accord dépend de l'approbation réglementaire et d'autres conditions de clôture.
Enstar Group (Nasdaq: ESGR) gab bekannt, dass ihre Tochtergesellschaft eine Rückversicherungsvereinbarung zur Abdeckung von nachteiligen Entwicklungen (ADC) mit den Tochtergesellschaften von James River Group Holdings abgeschlossen hat. Die Vereinbarung sieht ein Limit von 75 Millionen US-Dollar vor, das die bestehende ADC-Abdeckung von 160 Millionen US-Dollar der State National Insurance Company übersteigt. Diese Transaktion bietet zusätzlichen Schutz gegen zukünftige nachteilige Rückstellungsentwicklungen für US-Haftpflichtansprüche im Excess & Surplus Lines-Segment von James River für die Unfalljahre 2010-2023. Darüber hinaus wird die Tochtergesellschaft von Enstar 12,5 Millionen US-Dollar in Stammaktien von James River investieren. Der Abschluss des Deals hängt von der Genehmigung durch die Regulierungsbehörden und anderen Abschlussbedingungen ab.
- Secured new $75 million ADC reinsurance agreement with James River Group
- Strategic investment of $12.5 million in James River common stock
- Expansion of business relationships in the E&S market
- None.
Insights
This adverse development cover (ADC) agreement represents a significant strategic move for Enstar, providing
The transaction serves dual purposes: it generates fee income for Enstar while potentially benefiting from James River's equity upside in the growing E&S market. For James River, this additional layer of protection strengthens their balance sheet and provides fresh capital for market expansion. The 13-year coverage period (2010-2023) is extensive, offering substantial protection against long-tail liability claims.
The structure of this ADC agreement is strategically sound from a risk management perspective. By providing coverage above the existing
The combination of reinsurance protection with equity investment demonstrates Enstar's confidence in James River's underwriting capabilities and market position. This type of structured solution has become increasingly common as insurers seek to optimize capital efficiency while maintaining growth potential.
HAMILTON, Bermuda, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Enstar Group Limited (“Enstar”) (Nasdaq: ESGR) announced today that one of its wholly-owned subsidiaries has entered into an adverse development cover (“ADC”) reinsurance agreement with certain subsidiaries of James River Group Holdings, Ltd. (“James River”).
Under the terms of the agreement, Enstar’s subsidiary will provide
Completion of the transaction is subject to regulatory approval and satisfaction of other customary closing conditions.
David Ni, Enstar Chief Strategy Officer, said: “We are pleased to work with James River on a bespoke solution that further de-risks their balance sheet and provides equity capital to take advantage of the robust E&S 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 more than 120 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.
Cautionary Statement
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘aim’, ‘ambition’, ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future events or performance. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Important risk factors regarding Enstar can be found under the heading
“Risk Factors” in Enstar’s Form 10-K for the year ended December 31, 2023 and Enstar’s Form 10-Q for the quarter ended June 30, 2024 and are incorporated herein by reference. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.
Contact:
For Enstar:
For Investors: Matthew Kirk (investor.relations@enstargroup.com)
For Media: Jenna Kerr (communications@enstargroup.com)
FAQ
What is the value of Enstar's new ADC reinsurance agreement with James River Group?
What accident years does Enstar's ADC agreement with James River (ESGR) cover?
How much is Enstar (ESGR) investing in James River common stock?
