Enstar Announces $3.12 Billion LPT Transaction with Aspen
Jan 10, 2022
In the LPT transaction, Enstar’s subsidiary will reinsure losses incurred on or prior to
Enstar will assume net loss reserves of
Completion of the transaction is subject to regulatory approvals and satisfaction of various other closing conditions, during which time the ADC will remain in place. Premium and reserves under the LPT will be adjusted at closing for claims paid on and after the
“Continuing to build capital strength, flexibility and efficiency is an important part of our strategy and we are therefore pleased to announce this loss portfolio transfer with Enstar, which is a natural evolution of our previous reinsurance agreement and builds upon our strong relationship.
This transaction will positively impact our capital position and enable us to further deploy into the continued attractive market environment while significantly improving the protection of our balance sheet and future earnings from the potential impact of the recent soft market cycle.
In addition, this transaction allows us to take forward our repositioned underwriting portfolio while continuing to focus on servicing the needs of our clients.”
Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. In particular, the parties may not be able to complete the transaction described above due to the failure of the closing conditions being satisfied or for other reasons. In the event the transaction does not close, the ADC would remain in place. Important risk factors regarding Enstar can be found under the heading "Risk Factors" in our Form 10-K for the year ended
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Source: Enstar Group Limited