Enstar's Syndicate 2008 secures loss portfolio transfer with Atrium

Transaction shifts discontinued reinsurance liabilities

Enstar's Syndicate 2008 secures loss portfolio transfer with Atrium

Reinsurance

By Kenneth Araullo

Enstar Group Limited announced that its Lloyd’s syndicate, Syndicate 2008, managed by Enstar Managing Agency Limited, has entered a ground-up loss portfolio transfer (LPT) agreement with Atrium Syndicate 609, managed by Atrium Underwriters Limited.

The transaction covers Atrium Syndicate 609’s discontinued business in marine treaty reinsurance, property treaty reinsurance, and US contractors general liability.

As part of the agreement, Atrium Syndicate 609 will transfer net loss reserves of approximately US$196 million to Enstar’s Syndicate 2008. This figure is based on Atrium’s carried reserves as of the third quarter of 2024. The reinsurance arrangement applies to policies underwritten in the 2023 and prior years of account. Responsibility for claims handling will shift entirely to Syndicate 2008.

The deal is anticipated to close in the first quarter of 2025, subject to regulatory approvals and standard closing conditions.

Enstar CEO Dominic Silvester (pictured above) said that the transaction provides a legacy solution for Atrium, reflecting the ongoing partnership between the two firms.

“This transaction allows us to apply our specialist claims handling capabilities and bespoke solution approach to a portfolio in the Lloyd’s marketplace,” he said.

This deal follows another major recent LPT agreement with AXIS Capital that covers the latter’s reinsurance segment business.

Under the terms of the agreement, AXIS will retrocede US$2.3 billion of reinsurance segment reserves to Enstar through a 75% ground-up quota share structure. The transaction primarily involves casualty portfolios tied to underwriting years 2021 and prior, which totaled US$3.1 billion as of September 30, 2024.

AXIS anticipates recognizing a US$60 million benefit over several years from the excess of reserves ceded relative to the consideration, following the payment patterns of the reserves.

“We continue to be focused on advancing the strategic priorities laid out at our Investor Day in May of driving organic growth, reinvesting in the business, and managing our capital for the benefit of shareholders. We are pleased to be partnering with Enstar in advancing our strategic priorities,” AXIS CEO Vince Tizzio said.

What are your thoughts on this story? Please feel free to share your comments below.

Keep up with the latest news and events

Join our mailing list, it’s free!