Enstar Group Limited has announced that one of its subsidiaries has signed an agreement with Royal and Sun Alliance Insurance Limited (RSA) to provide adverse development cover (ADC) for certain UK, Irish and other businesses in exchange for premium.
The cover will provide £400m of “aggregate coverage” in excess of a £2.59bn retention on losses occurring on or prior to December 31, 2020 on a diversified mix of commercial and personal insurance lines risks.
Enstar and RSA will co-participate on the cover, with the group providing 50% and RSA retaining the remaining 50%.
Dominic Silvester, CEO, Enstar, said: “Enstar is pleased to continue our partnership with RSA by delivering a bespoke run-off solution, which draws on our expertise and proven ability to execute complex transactions.
“The 50% co-participation structure provides strong alignment of interests whilst supporting Intact strategic objectives and reaffirms Enstar’s position as the partner of choice in the legacy market.”