Benzinga | Feb 25, 2021 06:24AM EST

Enstar Announces ADC Agreement With AXA XL

Enstar Group Limited (NASDAQ:ESGR) announced today that one of its wholly owned subsidiaries has signed an agreement to provide adverse development cover to AXA XL, a division of AXA.

In the transaction, Enstar's subsidiary will cover losses incurred on or prior to December 31, 2019 on a diversified mix of global casualty and professional lines for a premium equal to the transfer of loss reserves of 90% of $1.550 billion (or $1.395 billion).

Enstar's subsidiary will provide 90% protection (with AXA XL retaining 10%) on two layers, the first providing $1.550 billion of cover in excess of a $9.438 billion retention and the second providing an additional $1.0 billion of cover in excess above $11.363 billion.

Completion of the transaction is subject to regulatory approvals and satisfaction of various closing conditions. The transaction is expected to close around the end of the first quarter 2021.