AXIS Completes $3.1B LPT Transaction with Enstar for Casualty Portfolios.

AXIS Capital and Enstar Group have completed a loss portfolio transfer transaction covering reinsurance segment reserves primarily related to casualty portfolios from 2021 and prior underwriting years. The transaction involves reinsurance reserves of $3.1 billion at September 30, 2024, and is structured as a 75% ground-up quota share. The deal is part of AXIS's strategy to reduce its risk exposure and focus on its core business.

AXIS Capital Holdings Limited (AXS) and Enstar Group Limited (ESGR) have completed a loss portfolio transfer (LPT) transaction, covering reinsurance segment reserves predominantly attributable to casualty portfolios related to 2021 and prior underwriting years [1]. The transaction involves reinsurance reserves of $3.1 billion at September 30, 2024, and is structured as a 75% ground-up quota share, with AXIS retroceding $2.3 billion of reinsurance segment reserves to Enstar [2]. The LPT reinsurance agreement was provided by Enstar’s wholly-owned subsidiary, Cavello Bay Reinsurance Limited, which has S&P and AM Best 'A' financial strength ratings [3].

The completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions. The deal is part of AXIS's strategy to reduce its risk exposure and focus on its core business.

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $6.1 billion at September 30, 2024, and locations in Bermuda, the United States, Europe, Singapore, and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best [1].

Enstar is a NASDAQ-listed global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Australia, Liechtenstein, and Belgium. A market leader in completing legacy acquisitions, Enstar has acquired more than 120 companies and portfolios since its formation in 2001 [2].

References:
[1] https://www.businesswire.com/news/home/20250424153226/en/AXIS-Completes-Previously-Announced-Transaction-With-Enstar
[2] https://www.marketscreener.com/quote/stock/ENSTAR-GROUP-LIMITED-9211/news/AXIS-Completes-Previously-Announced-Transaction-With-Enstar-49711248/
[3] https://www.stocktitan.net/news/AXS/axis-completes-previously-announced-transaction-with-7rt4bk5xszsw.html