AXIS Capital Holdings and Enstar Group have finalized a loss portfolio transfer (LPT) agreement involving US$3.1 billion in reinsurance segment reserves tied primarily to casualty portfolios from underwriting years 2021 and prior.
Under the agreement, AXIS has retroceded 75% of the covered reserves – equivalent to US$2.3 billion – to Enstar. The transaction was executed through Cavello Bay Reinsurance Limited, a wholly owned subsidiary of Enstar. Cavello Bay holds ‘A’ financial strength ratings from both S&P and AM Best.
The transaction was completed following the receipt of necessary regulatory approvals and the fulfillment of closing conditions, the companies said.
AXIS expects to realize a US$60 million benefit over time due to the excess of reserves ceded compared to the consideration paid. This benefit will be recognized in line with the reserve payment patterns.
Claims control for the transferred reserves will continue to reside with AXIS. Enstar will assume certain administrative responsibilities as part of the agreement.
Enstar has been active in executing significant reinsurance transactions in 2024 and 2025, focusing on LPTs to manage legacy liabilities and support clients' strategic objectives.
The portfolio primarily consisted of US commercial liability and workers’ compensation business from recently discontinued programs. This deal built upon a previous 2023 transaction between the two companies, where Enstar had assumed US$1.9 billion in reserves and provided US$900 million in excess coverage.
Additionally, in June, Enstar completed a reinsurance transaction with Accredited Surety and Casualty Company, Inc., and Accredited Insurance (Europe) Limited, in connection with Accredited's acquisition by Onex Partners.
Enstar provided reinsurance for net reserves of approximately US$234 million, covering diverse portfolios including asbestos, general casualty, and workers’ compensation exposures in both the US and European markets.
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